The VAT and corporation tax changes in 2011 mean that banks could soon be paying a lower tax rate than consumers, basic rate taxpayers and small businesses, the TUC says today (Monday). People going shopping in the January sales will be the first to feel the pinch of VAT increasing from 17.5 to 20 per cent on Tuesday 4 January 2011. Recent TUC research found that VAT will hit the poorest fifth of households harder than the richest as they spend twice as much of their income on items subject to VAT.
The headline rate of corporation tax is also set to fall from 28 per cent to 27 per cent in April 2011.
However the recent TUC report The Corporate Tax Gap found that the effective corporation tax rate for large multinational companies – the headline corporation tax rate minus the various tax loopholes they are able to exploit to bring down their tax bill – fell to 21 per cent in 2009, and has fallen by 0.5 percentage points every year since 2000. This means that multinational companies including banks could legally pay as little as 19 per cent corporation tax in 2011, the TUC says.
The VAT and corporation tax changes will further skew the UK tax system in favour of high profit industries such as banking over small businesses, who will be hit hard by the VAT rise. With banks still refusing to lend to SMEs, the forthcoming tax changes will deliver a big blow to hopes of a private sector recovery, the TUC believes.
UK banks will be able to offset the forthcoming corporation tax rate cut against the government’s £2.5 billion bank levy and actually cut their tax bill in 2011. Giving UK banks a tax cut makes a mockery of government rhetoric on getting tough on the banks for causing the global financial crash, says the TUC.
The TUC wants the government to confirm that the VAT increase will only be a temporary measure and to take firmer action on the banks to make sure that they start paying their fair share towards clearing up the mess they made.
A Robin Hood tax on financial transactions could raise revenue to invest in growth or cut the deficit, while more transparency on bonus levels in the City could help to limit the kind of reckless bonus-fuelled decision making that helped the cause the financial crash in the first place, says the TUC.
Midlands TUC Regional Secretary Cheryl Pidgeon said: “Shoppers looking for bargains in the January sales will soon be paying more to clear the debts racked up by the banks when they plunged the UK into recession and asked for a multi-trillion pound bailout.
“People will not happy to learn that banks have managed to earn themselves a tidy tax cut as a reward for their failure while the rest of us suffer from job losses, tax hikes and the wrecking of public services.
“It’s about time the government stops being in thrall to the banks and implements some serious reform. Otherwise banks will make the same mistakes again and everyone else will be forced to pay the price.
“Consumer spending and business growth are crucial to our economic recovery. The last things we need are mass job losses and VAT hikes that will stifle growth and spread misery throughout the country.”
- The TUC report that examines the effective rate of corporation tax The Corporate Tax Gap is available to download under embargo at www.tuc.org.uk/extras/corporatetaxgap.pdf
- The TUC tax briefing on VAT is available at www.tuc.org.uk/economy/tuc-18033-f0.pdf
Midlands TUC Media This blog contains material from the Midlands TUC. Our media releases will appear on this site as well as linking to the Midlands TUC website which hosts our enewsletters and much more.
Monday, 27 December 2010
Thursday, 23 December 2010
End of an era at the Midlands TUC
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| Veronica with Sir David Perris, former Midlands TUC Regional Secretary |
Veronica has been at the TUC for 27 years, organised countless Regional Council and Executive meetings and dealt with thousands of trade union officers, stewards and members over the years. Before working at the TUC she provided admin and secretarial support to David, now Sir David, Perris at Birmingham Trades Council.
So much could be said about Veronica's contribution to the work of the TUC but it is not just about work. Veronica has been a friend to all her colleagues at the TUC, kind, generous and great fun to work with. We will miss you Veronica, and we wish you a long healthy and happy retirement.
Barriers and opportunities faced by LGB&T people in public and political life.
On 20 December 2010, Government commissioned research into the opportunities and barriers faced by lesbian, gay, bisexual and transgender (LGB&T) people in public and political participation was published. The research was conducted by the Office for Public Management and forms part of the Government’s work programme ‘Working for Lesbian, Gay, Bisexual and Transgender Equality’, which was launched in June 2010. The research and the wider work programme contribute to one of GEO’s key aims - to promote equal participation in civil society. By using the talents of everyone, we can make sure that our communities and institutions benefit from the whole range of experiences and skills of society. This report and its recommendations will enable us to develop targeted actions to improve the opportunities for, and tackle the barriers faced by, LGB&T people who want to participate in public, political and community life.
Below is a link to a copy of the report - please note if you want to print this it is 95 pages long.
http://www.equalities.gov.uk/pdf/Experiences%20of%20LGBT%20people_for%20publishing%20Dec%202010.pdf
Below is a link to a copy of the report - please note if you want to print this it is 95 pages long.
http://www.equalities.gov.uk/pdf/Experiences%20of%20LGBT%20people_for%20publishing%20Dec%202010.pdf
Wednesday, 22 December 2010
No Christmas cheer for the west midlands long-term unemployed, says TUC
Almost a quarter of a million people have now been on the dole for more than a year in the UK – more than twice as many as at the start of the last recession – and lots of them will be spending their second or even third successive Christmas out of work, says the TUC today (Wednesday).
In the west midlands Wolverhampton has the highest percentage increase (39%) with 2,695 people unemployed for more than a year compared to 1165 in the run up to Christmas 2007. Sandwell follows with an increase of 31%, Shropshire with 28% and Walsall with 25%.
The TUC analysis of official unemployment statistics reveals that more than a third of the 232 local authority areas across the UK (88 council areas) now have more than a thousand residents who have been claiming Jobseeker’s Allowance (JSA) for at least 12 months, compared to just 26 council areas in December 2007.
At the beginning of the last recession, at the close of 2007, 18,175 individuals in the west midlands had been claiming JSA for more than 12 months. Now, almost three years on in November 2010, there are 31,240 who have been struggling to find work for more than a year.
The number of unemployed people outnumbering vacancies by more than five to one across the UK – rising to around 20 to one in some employment blackspots – and the jobs crisis could get even worse in the new year, the TUC warns.
Commenting on the figures, Midlands TUC Regional Secretary Cheryl Pidgeon said: “Across the west midlands thousands and thousands of people have been struggling to find work – some of them for several years now – and for their families there won’t be much to celebrate this Christmas.
“While many families with working adults may be tightening their belts a little this Christmas, the thousands of long-term unemployed households will be anxiously juggling their family budgets, knowing only too well that their JSA of £65.45 isn’t going to buy much Christmas cheer this year.
“And with many local councils in the process of issuing redundancy notices to thousands of their employees over the coming weeks, the future for those about to lose their jobs and those who’ve been out of work for some time looks especially bleak.
“The government’s huge cuts to public spending will see thousands of public sector workers being made redundant in the new year, and those working in the private sector could be hit just as hard.
“We hope many of the people affected will bring their families to join our demonstration against the cuts on 26 March next year to try to show ministers the damage and widespread misery the cuts are causing, and persuade them that it is not too late to change course.”
In the west midlands Wolverhampton has the highest percentage increase (39%) with 2,695 people unemployed for more than a year compared to 1165 in the run up to Christmas 2007. Sandwell follows with an increase of 31%, Shropshire with 28% and Walsall with 25%.
The TUC analysis of official unemployment statistics reveals that more than a third of the 232 local authority areas across the UK (88 council areas) now have more than a thousand residents who have been claiming Jobseeker’s Allowance (JSA) for at least 12 months, compared to just 26 council areas in December 2007.
At the beginning of the last recession, at the close of 2007, 18,175 individuals in the west midlands had been claiming JSA for more than 12 months. Now, almost three years on in November 2010, there are 31,240 who have been struggling to find work for more than a year.
The number of unemployed people outnumbering vacancies by more than five to one across the UK – rising to around 20 to one in some employment blackspots – and the jobs crisis could get even worse in the new year, the TUC warns.
Commenting on the figures, Midlands TUC Regional Secretary Cheryl Pidgeon said: “Across the west midlands thousands and thousands of people have been struggling to find work – some of them for several years now – and for their families there won’t be much to celebrate this Christmas.
“While many families with working adults may be tightening their belts a little this Christmas, the thousands of long-term unemployed households will be anxiously juggling their family budgets, knowing only too well that their JSA of £65.45 isn’t going to buy much Christmas cheer this year.
“And with many local councils in the process of issuing redundancy notices to thousands of their employees over the coming weeks, the future for those about to lose their jobs and those who’ve been out of work for some time looks especially bleak.
“The government’s huge cuts to public spending will see thousands of public sector workers being made redundant in the new year, and those working in the private sector could be hit just as hard.
“We hope many of the people affected will bring their families to join our demonstration against the cuts on 26 March next year to try to show ministers the damage and widespread misery the cuts are causing, and persuade them that it is not too late to change course.”
No Christmas cheer for the East Midlands long-term unemployed, says TUC
Almost a quarter of a million people have now been on the dole for more than a year in the UK – more than twice as many as at the start of the last recession – and lots of them will be spending their second or even third successive Christmas out of work, says the TUC today (Wednesday).In the east midlands Derby has the highest percentage increase (29%) with 1,175 people unemployed for more than a year compared to 910 in the run up to Christmas 2009. Leicestershire, Lincolnshire and Derbyshire all show high double digit increases at 23%, 22% and 19% respectively.
The TUC analysis of official unemployment statistics reveals that more than a third of the 232 local authority areas across the UK (88 council areas) now have more than a thousand residents who have been claiming Jobseeker’s Allowance (JSA) for at least 12 months, compared to just 26 council areas in December 2007.
At the beginning of the last recession, at the close of 2007, 7,260 individuals in the east midlands had been claiming JSA for more than 12 months. Now, almost three years on in November 2010, there are 17,035 who have been struggling to find work for more than a year.
The number of unemployed people outnumbering vacancies by more than five to one across the UK – rising to around 20 to one in some employment blackspots – and the jobs crisis could get even worse in the new year, the TUC warns.
Commenting on the figures, Midlands TUC Regional Secretary Cheryl Pidgeon said: “Across the east midlands thousands and thousands of people have been struggling to find work – some of them for several years now – and for their families there won’t be much to celebrate this Christmas.
“While many families with working adults may be tightening their belts a little this Christmas, the thousands of long-term unemployed households will be anxiously juggling their family budgets, knowing only too well that their JSA of £65.45 isn’t going to buy much Christmas cheer this year.
“And with many local councils in the process of issuing redundancy notices to thousands of their employees over the coming weeks, the future for those about to lose their jobs and those who’ve been out of work for some time looks especially bleak.
“The government’s huge cuts to public spending will see thousands of public sector workers being made redundant in the new year, and those working in the private sector could be hit just as hard.
“We hope many of the people affected will bring their families to join our demonstration against the cuts on 26 March next year to try to show ministers the damage and widespread misery the cuts are causing, and persuade them that it is not too late to change course.”
The TUC analysis of official unemployment statistics reveals that more than a third of the 232 local authority areas across the UK (88 council areas) now have more than a thousand residents who have been claiming Jobseeker’s Allowance (JSA) for at least 12 months, compared to just 26 council areas in December 2007.
At the beginning of the last recession, at the close of 2007, 7,260 individuals in the east midlands had been claiming JSA for more than 12 months. Now, almost three years on in November 2010, there are 17,035 who have been struggling to find work for more than a year.
The number of unemployed people outnumbering vacancies by more than five to one across the UK – rising to around 20 to one in some employment blackspots – and the jobs crisis could get even worse in the new year, the TUC warns.
Commenting on the figures, Midlands TUC Regional Secretary Cheryl Pidgeon said: “Across the east midlands thousands and thousands of people have been struggling to find work – some of them for several years now – and for their families there won’t be much to celebrate this Christmas.
“While many families with working adults may be tightening their belts a little this Christmas, the thousands of long-term unemployed households will be anxiously juggling their family budgets, knowing only too well that their JSA of £65.45 isn’t going to buy much Christmas cheer this year.
“And with many local councils in the process of issuing redundancy notices to thousands of their employees over the coming weeks, the future for those about to lose their jobs and those who’ve been out of work for some time looks especially bleak.
“The government’s huge cuts to public spending will see thousands of public sector workers being made redundant in the new year, and those working in the private sector could be hit just as hard.
“We hope many of the people affected will bring their families to join our demonstration against the cuts on 26 March next year to try to show ministers the damage and widespread misery the cuts are causing, and persuade them that it is not too late to change course.”
Monday, 20 December 2010
Birmingham Refuse workers determined to win dispute
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| Gerard Coyne, Unite Regional Secretary |
Unite Regional Secretary Gerard Coyne said, "I am proud of the action you have taken today, you have stayed disciplined throughout the dispute and stuck it out on the picket lines despite the dreadful weather conditions."
Over 90% of the refuse workers voted to take industrial action in defence of Birmingham City Councils move to grab £4,000 from each worker. "It is not just about the money thought," continued Mr Coyne,"It is about dignity and respect - something the Council denies you through their total inability to listen to the alternative case from the trade union side".
The meeting also heard from UNISON's Graham Horne who explained that the refuse workers dispute was one of a series of attacks on the terms and conditions of City Council employees. Connexions staff were also in dispute with their action due in early January. "The so called Birmingham Contract is going to be imposed on 26,000 non education staff. It means the end of weekend and shift premiums, the end of unsocial hours payments. Some of the lowest paid staff in the council rely on theses payments including up to 1,000 Home Help staff who stand to lose £3,000 a year," said Mr Horne.
The meeting ended with the Chair, Steve Foster, outlining the next steps with a meeting scheduled with the employers for 23rd December.
2,000 hits on the blog!
When we set up this blog in December 2008, we thought it might be a slow start to get people to visit - after all, there are a lot of ways to get information from the TUC and a new blog would take some time to gather impetus. And that is how it started, slowly!
It took 18 months to get the first 1,000 hits, which we recorded in June of this year. Six months later we have had our second thousand hits, so we seem to be getting a head of steam going.
We are really pleased with how the blog is progressing, not least as we have some idea of where visitors come from. As you might expect, the largest number of hits come from the UK. This closely follwed by the USA.
The list of countries from where we have had most viewings is fascinating!
United Kingdom 667
United States 600
Netherlands 157
Russia 132
Germany 57
Ukraine 33
China 23
South Korea 22
Italy 19
Latvia 18
So, who are you all and why do you visit our blog? It would be really interesting to know why you visit, and why you come back. And, is there anything in particular you would like to see us report? Let us know by commenting on this story, below.
And did you know we have other blogs?
http://midtuclgbtnetwork.blogspot.com/
http://midlandssrr.blogspot.com/
It took 18 months to get the first 1,000 hits, which we recorded in June of this year. Six months later we have had our second thousand hits, so we seem to be getting a head of steam going.
We are really pleased with how the blog is progressing, not least as we have some idea of where visitors come from. As you might expect, the largest number of hits come from the UK. This closely follwed by the USA.
The list of countries from where we have had most viewings is fascinating!
United Kingdom 667
United States 600
Netherlands 157
Russia 132
Germany 57
Ukraine 33
China 23
South Korea 22
Italy 19
Latvia 18
So, who are you all and why do you visit our blog? It would be really interesting to know why you visit, and why you come back. And, is there anything in particular you would like to see us report? Let us know by commenting on this story, below.
And did you know we have other blogs?
http://midtuclgbtnetwork.blogspot.com/
http://midlandssrr.blogspot.com/
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