Friday, 1 April 2011
Osborne's Corporation Tax cut - a huge cost to the UK, with little benefit
However, there are two problems with this story. The first concerns WPP and second the wisdom of cutting UK corporate taxes.
First, lets take WPP. It's announcement was met with gleeful back-slapping amongst Osborne and his friends at the Treasury. However, its press statements omit a central fact: WPP's head office is Ireland barely qualifies for the term - it's almost non-existent in fact, with what appears to be a measly eight employees. It's original 'relocation' to Dublin has, unsurprisingly, been described as a 'tax dodge'.
In other words, relocating its head office back to London, where it already houses its far, far more employees, will make no discernible effect. Accountancy Age backs up this view, describing the tax cuts as "a £6.7bn gamble to attract businesses to the UK".
The fact is that George Osborne has, in the face of huge spending cuts to frontline services that will affect millions of British people, handed billions to some of the largest multinational corporations on the planet - and potentially for absolutely no benefit.