Tax demonstrations add to coalition issues

LAST weekend, the fast-growing movement UK Uncut stepped up their campaign over evasion of taxation regulations.  Across the country, demonstrations and blockades of shop entrances led to several major top-chain stores being forced to close their branches on their busiest day of the calendar year.  Why are these big businesses and individual avoiding the system and is it fair?  Journalism student Simon Wright looks into this controversial detail in closer form.

WITH the highly anticipated tuition fees vote in the House of Commons tomorrow, the budget cuts that the coalition government have come under severe fire in recent weeks. 

DEMOS: Protests take place last weekend at Oxford Street

One issue that seems to be dodged by all politicians is the lack of action on tax avoidance by some of the wealthiest in our country.  Last Saturday, campaigners from UK Uncut carried out some deep pop-up protests about the regulations, which force several branches of TopShop and Vodafone around the country to close their doors, on one of the busiest trading days of the year.  Several campaigners and journalists were ejected by security guards as demonstrations took place in 21 towns and cities across the UK.

UK Uncut is a fast-growing movement that is gathering growing support via social networking sites Twitter and Facebook.  Already, demonstrations have been planned this weekend for Aberystwyth, Chester and Bury St Edmunds.  A website was set-up as recently as November 28, with many people already getting involved.

A spokesman for UK Uncut, James Kelly told the Guardian; “Tax avoidance is a big issue and we believe this is the alternative to the cuts the government are making.”  UK Uncut is taking their action on two organisations in particular.

Vodafone dodge

TAXING: UK Uncut's strong opinion of Vodafone

OVER the last ten years, communications giant Vodafone have been fighting tooth and nail to avoid paying the government around £6billion in tax.  After a defeat this summer in court to HM Revenue and Customs, current chancellor George Osbourne let Vodafone off the hook, rather than force through the payment in October.  The UK Uncut called the action ‘shameless’ and furious ex-Vodafone customer Tamika Short agrees; “Everyone has to pay their way and the higher should pay more than poorer families and students.  What Vodafone are doing is an absolute disgrace!”

The campaign continues against Vodafone, and they aren’t the only businesses to be affected, with Boots, HSBC and Barclays Bank avoiding similar laws.

Greedy Green

THE ninth richest man in the UK, Phillip Green is also taking a lot of stick from UK Uncut.  Green, whose wealth was, estimated at £4.4billion in 2008 runs some of the biggest names on Britain’s high streets.  His retail empire includes TopShop, BHS and Dorothy Perkins.  Even though Green lives in the UK, he runs the Arcadia retail group that he doesn’t even own.  His wife does, and by living in the tax haven of Monaco, doesn’t have to pay a single penny.  One of the demonstrators, Chris_Coltrane posted this chant on Phillip Green in London on his Twitter account last weekend; “Where did all the money go?  He sent it off to Monaco!”

In 2005, Green awarded himself a cool £1.2billion, and divided it via tax havens in Monaco and Jersey.  It is costing the annual taxpayer around £300million, which angered protestor Benjamin Neem.  Neem told the BBC; “Phillip Green’s missing millions need to be reclaimed and invested into public services, not his wife’s bank account.”

Recently, Green was made an advisor on the spending cuts by David Cameron, which adds to the pain for many protestors, including James Kelly; “Phillip Green is a well-known tax avoider and today, we’re bringing our campaign right to the heart of the empire.”  In fact, his £285million dodge could pay the salaries of 20,000 NHS nurses and the full tuition fees of £9,000 for almost 32,000 students, an extraordinary statistic. 

Link with students

I ASKED accounting and finance expert at the University of Northampton, Christopher Cook on the issue, but he declined to comment, only saying “It would cause heated and long debates.”

The evasion of tax payments links in with the tuition fees issue, as these were two of the Liberal Democrats four key pledges that have been broken from their manifesto.  The newly-formed group UK Uncut is also believed to feature public sector workers, the unemployed and pensioners.

This is one debate that won’t go away, and the coalition government have now got major tests infront of them, if they are to control the growing frustration from many on the spending cuts.