Socialist Worker

Cash handouts for private firms

Issue No. 2129

The government’s plans announced this week involve suspending a proposed tax increase of 1 percentage point on profits for small business.

It is also changing taxation rules so that British multinationals will pay even less tax on profits that they make overseas.

And the pre-budget report announces a extra £2 billion in public money for British banks to lend to businesses. Yet another £1 billion has been earmarked to support businesses through the export credit guarantees.

During its 11 years in office, New Labour has cut taxes on corporate profits from 33 percent to 28 percent.

We should not be cutting taxes on the corporations responsible for the current economic chaos. Instead we should be charging punitive taxes on company profits to pay for public services, housing, pensions and jobs.

Gordon Brown is to chair a new national employment partnership to help the unemployed find work. The government’s grand plan is to create a raft of new debt councillors, but its measures involve extending the use of the private sector into getting people into work.

There are 3.3 million workers who work over 48 hours a week. If that was reduced to 35 hours with no loss of pay it would create at least 1.2 million jobs.

Click here to subscribe to our daily morning email newsletter 'Breakfast in red'

Article information

Tue 25 Nov 2008, 18:29 GMT
Issue No. 2129
Share this article

Mobile users! Don't forget to add Socialist Worker to your home screen.