Tax Avoidance

Lord Berkeley Excerpts

Wednesday 29th April 2020 Lords Chamber

Asked by

[Lord Berkeley]

To ask Her Majesty’s Government what plans they have to make it a condition for any company in receipt of state support as a result of COVID-19 to agree to not participate in any artificial tax avoidance arrangements.

The Question was considered in a Virtual Proceeding via video call.

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[The Minister of State, Cabinet Office and the Treasury (Lord Agnew of Oulton) (Con)]

My Lords, the initiatives introduced by the Government to address the economic impact of Covid-19 are designed to support businesses that contribute to the UK economy. Since 2010, we have introduced over 100 new measures to tackle avoidance and evasion, securing and protecting over £200 billion that would otherwise have gone unpaid. The Government remain committed to continuing their strong track record on clamping down on those who seek to avoid or evade paying their fair share.

[Lord Berkeley (Lab)]

My Lords, I am grateful to the Minister for his response. The OBR is suggesting a 35% fall in GDP. As the Minister said, the Government obviously need as much tax revenue as they can get, but it needs to be fair. In the Times, there are reports of examples from Arcadia, The Range, and Starbucks, which is in line for rate relief alone of £28 million. Virgin Active, which is on a turnover of £168 million and paid virtually no tax, could gain £16 million in rate relief. There are similar examples of many other companies, but will the Minister confirm that it is wrong for companies making large profits in the UK not to pay their fair share of tax? Will the Government refuse to give such companies rate relief?

[Lord Agnew of Oulton]

My Lords, all the support that we have offered has been aimed at keeping businesses going and securing employment, mostly through the furlough scheme. While I take on board the noble Lord’s concerns, I believe that the rapid action that we have taken, which has to be general by the definition of the time period that we have had to operate in, has helped to secure businesses’ long-term future, which is our priority.