Guardian teams up with tax-avoiding Amazon. Does it matter?

Audible will be providing the Guardian's audiobooks, but a boycott would achieve nothing.

A Guardian editorial, titled "Taxing corporations: One law for them…" on 3 December:

Nearly four years have passed since the Guardian's tax gap series, as have two since the founding of UK Uncut and one since Occupy. In different ways, each shone a spotlight on the murky world of business tax, and to some extent succeeded – though until now nobody would have called it a mainstream concern. But the tax affairs of Google itself, together with Amazon and Starbucks, are suddenly just that…

The Guardian, Tuesday 18 December:

The Guardian and [wholly-owned Amazon subsidiary] Audible today announce the launch of The Guardian Audio Edition. This hour-long weekly audio digest, created in partnership with, the UK's largest provider of digital audiobooks, will be produced by the Guardian's award-winning multimedia team. Each audio edition will be introduced by Guardian columnist Jonathan Freedland and will showcase the very best of news, culture and opinion pieces as published in the Guardian each week.

Of course, this actually says less about hypocrisy and more about the nigh-on impossibility of avoiding doing business with the companies which make up the backbone of the internet. Just as with the fact that UKUncut is hosted on Amazon's severs, the Guardian isn't making a decision to side with an immoral company; it is operating in an economic system fundamentally incompatible with making the sort of simple ethical stands which may have been possible in a bygone age.

As the post on By Strategywhich broke the UKUncut story, says:

First, modern supply chains, as this UKUncut example ably illustrates, are so dense it is impossible to avoid a particular company. Second, the idea of opposing consumerism by proposing ethical consumerism is problematic also. There is a huge literature on this. More often than not it moralises those who cannot afford to make these kinds of consumer choices (local bookshops, ethical eating, McDonalds versus local businesses etc) as bad, while failing to recognise, for example, stagnant wages. Finally, Amazon is neither going to be economically damaged nor morally persuaded by a boycott. Ask Nestle how effective long running boycotts are.

The Guardian and Amazon are BFFs. But so are we all.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.