Tuesday 17 January 2017 / 3:35 PM 2017 Press Archive / The Latest from Labour

Hammond’s £120bn ‘Tax Haven’ giveaway – John McDonnell

Today
while the Prime Minister delivered her speech on Brexit, the Chancellor Philip
Hammond has refused to rule out that the Conservatives are preparing the
greatest corporate giveaway in British history.

He failed
to deny to a German newspaper at the weekend that he would be prepared to turn
Britain into a “tax haven” as a result of Brexit.

Estimates
from the House of Commons Library suggest that on top of existing corporate
giveaways the cost of slashing corporate taxes to match tax havens like Ireland
would be a shocking £120bn over the next five years.

That is
equivalent to more than 5p on the basic rate of income tax.

 Given the
existing crisis in our public services and the impending cost to the British
economy of leaving the single market, coupled with the threat of dramatically
slashing our corporate tax revenue, Labour has demanded the Chancellor and the Government
come clean with the British people on the economic implications of a Tory
Brexit.

John
McDonnell MP, Labour’s Shadow Chancellor,
speaking after Treasury
Questions, said:

“Labour
has warned that the Tories are lining up a bargain-basement Brexit and now
Philip Hammond has confirmed it, promising huge tax cuts for the corporate
elites.

“On top
of the stark costs to the British economy from losing access to the Single Market,
it is beyond reckless for the Chancellor to speculate about turning Britain
into a tax haven after six years of Tory failure have seen the national debt
rise by £600bn whilst austerity has hammered living standards for most. He has
wriggled out of answering questions in Parliament as to how he will continue to
finance the health and social care we need if he slashes corporation taxes

“Only
Labour is committed to breaking our rigged economic system and delivering real
pay increases for working people. We’ll reverse the Tory tax giveaways for the
elite and deliver the investment this country needs for high-paid, secure
jobs.”