If Osborne is opposed to tax avoidance, why did he reward it?

The Chancellor says he's "shocked" by tax avoidance. So why did he cut the 50p rate?

George Osborne's claim that he is "shocked" by the level of tax avoidance in the UK is evidence of either extreme naïveté or extreme cynicism. Are we really to believe that it was only after studying millionaires' tax returns that the Chancellor realised that some of them pay "virtually no" income tax? And does he really think the voters will believe him? 

He told the Daily Telegraph

I was shocked to see that some of the very wealthiest people in the country have organised their tax affairs, and to be fair it’s within the tax laws, so that they were regularly paying virtually no income tax. And I don’t think that’s right.

Admirable words, but if Osborne is opposed to tax avoidance, which he has described as "morally repugnant", why did his Budget reward it? The principal reason for the abolition of the 50p tax rate was that high-earners are avoiding it. As Osborne stated in the Budget

HMRC find that an astonishing £16 billion of income was deliberately shifted [emphasis mine] into the previous tax year - at a cost to the taxpayer of £1 billion, something that the previous Government's figures made no allowance for.

But this is an argument for reducing tax avoidance, not for cutting taxes for the top one per cent. While the rich could avoid the 50p rate in the first year of its existence [by bringing forward income from 2010/11 to 2009/10 in order to pay the 40p rate], this is not a trick they could have repeated. Yet Osborne has cut the rate all the same. It is as if he has rewarded welfare cheats by increasing their benefits.

Osborne's insistence, then, that he is "going after" tax avoiders is simply an attempt to change the subject. If the Chancellor really wants to ensure the rich pay their fair share, he should reinstate the 50p rate. 

Chancellor George Osborne: "shocked" by tax avoidance? Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Tony Blair won't endorse the Labour leader - Jeremy Corbyn's fans are celebrating

The thrice-elected Prime Minister is no fan of the new Labour leader. 

Labour heavyweights usually support each other - at least in public. But the former Prime Minister Tony Blair couldn't bring himself to do so when asked on Sky News.

He dodged the question of whether the current Labour leader was the best person to lead the country, instead urging voters not to give Theresa May a "blank cheque". 

If this seems shocking, it's worth remembering that Corbyn refused to say whether he would pick "Trotskyism or Blairism" during the Labour leadership campaign. Corbyn was after all behind the Stop the War Coalition, which opposed Blair's decision to join the invasion of Iraq. 

For some Corbyn supporters, it seems that there couldn't be a greater boon than the thrice-elected PM witholding his endorsement in a critical general election. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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