GMB calls pubcos 'tax dodgers' in conference resolution

The GMB has warned it will draw a link between what it calls 'inflated rental incomes' from pubcos and tax avoidance schemes that see businesses transferring money to offshore accounts to avoid paying money to the authorities.

The union, which has stepped up its campaign against a number of leading pub operators and brewers in recent weeks, said it will table a resolution at the Labour Party's annual conference at the end of this month, calling for action on tax avoidance schemes it said cost the UK economy £50bn a year.

The GMB said it would identify "the systematic off shoring of income streams in crucial industrial sectors into tax havens to avoid tax".

It would show how these included "the inflated rental income from Britain's care homes, the freehold of these properties are owned by the Qatari Investment Authority amongst others, and how this also happens with the inflated rental incomes from 25,000 tied pubs across the country, owned by pubcos, at the expense of both consumers and taxpayers".

Paul Kenny, the GMB's general secretary, said: "The governor of the Bank of England told the TUC that the bankers are to blame for the recession that has given rise the major deficit in the public finances. He did not disagree with going after tax evasion and tax avoidance to recover the vast sums not paid to the Exchequer.

"The first people in the queue to pay for this mess should be the people and industries that created it. GMB's contemporary resolution highlights the £50bn to £60bn of taxes not paid by high worth individuals and companies and presses for it to be collected with vigour."

If the motion was carried Kenny said his members would expect the new leader of the Labour Party to give tax dodgers his "highest priority".

The GMB resolution in full:​

"Conference condemns the continued growth of tax avoidance schemes of the super rich and corporations in Britain as exposed by the media in September. This is depriving the Exchequer of funding, especially when the national deficit is £160 billion while we are faced with £100 billion cuts.

Tax avoidance schemes cost the economy more than £50 billion a year.

In August the Government appointed Philip Green to advise them. His own tax arrangements are now being investigated following publication that he lightens his own tax bill.

Conference condemns the very rich's immoral behaviour. By moving their money to tax havens through tax avoidance schemes, they are depriving the economy of much needed funds.

From blatant off shoring to taking taxpayers cash derived from elderly care - involving the Qatari Investment Authority to ripping off high street consumers by Pubcos where cash ends up in tax free accounts in the Cayman Islands.

The HMRC high net worth unit tasked with investigating the tax affairs of the super rich has been cut by 20% - showing this isn't a priority for Government.

Conference opposes the rise of VAT to 20% announced in June's Budget.

Conference, calls on the Labour Party to:

• Mount a campaign to highlight tax avoidance.

• Campaign to end the proposed VAT rises.

• Commits to ending tax avoidance schemes and reduce the level of VAT when the Party returns to power.

• Promote the Robin Hood transaction tax."