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—Putting her foot in it again: Rachel Reeves has a history of stupid decisions. Now she has employed one of the UK's leading tax avoidance advisors to help her, when we need to END tax avoidance in order to improve the benefits bill.

—Putting her foot in it again: Rachel Reeves has a history of stupid decisions. Now she has employed one of the UK’s leading tax avoidance advisors to help her, when we need to END tax avoidance in order to improve the benefits bill.

This is very disturbing, from the new Private Eye (1379):

“Rachel Reeves, Labour’s shadow work and pensions secretary, is the latest Opposition member to accept help from PricewaterhouseCoopers (PwC).

“The management consultant is supplying an analyst to support Reeves from October to January… This suggests that, although Labour has made a lot of noise about the government’s work with unpopular contractors like Atos and A4e, the People’s Party intends to stick with this commercial approach to welfare should it find itself back in power next year.

“PwC is already involved in advising the government on ‘commissioning’ welfare services; and last year Tory employment minister Mark Hoban asked it to help strengthen ‘quality assurance’ in the fitness-to-work tests carried out by Atos [PwC is Hoban’s former employer, implying an inappropriate relationship from the get-go]. This didn’t seem to work, as Atos quit the contract this year after much criticism.

“Reeves’ timing is unfortunate, to say the least. PwC is currently heavily implicated in the latest scandal of big corporations avoiding tax through Luxembourg. Most of the leaked documents show PwC was helping arrange all those tax-free tricks.”

PwC is, along with the rest of the ‘Big Four’ accountancy firms – Deloitte, KPMG and Ernst & Young – of course, well-known to Vox Political. Along with the others, it has been invited to actually write government legislation on behalf of the Tories and Liberal Democrats – specifically UK law on tax avoidance – while running many tax avoidance schemes.

In a previous article, Vox Political wrote: “The Department for Work and Pensions has employed many private firms; this is the reason that department is haemorrhaging money. There are the work programme provider firms who, as has been revealed in previous blog entries, provide absolutely no useful training and are less likely to find anyone a job than if they carried on by themselves; there are the IT firms currently working on Universal Credit, about which Secretary of State Iain Duncan Smith lied to Parliament when he said he was having to write off £34 million of expenditure – the true figure was later revealed to be closer to £161 million, almost five times as much; there are Atos and Capita, and probably other firms that have been hired to carry out so-called ‘work capability assessments’ of people claiming sickness, incapacity and disability benefits, according to a plan that intentionally ignores factual medical evidence and places emphasis on a bogus, tick-box test designed to find ways to cut off their support; and there is Unum Insurance, the criminal American corporation that designed that test, in order to push British workers into buying its bogus insurance policies that work on exactly the same principle – this is theft on a grand scale.”

This blog has warned that the bosses of companies like Unum, Atos and KPMG (and by extension, PwC) were planning to ensure that they would have government contracts, no matter which political party was in office. In effect, Vox Political warned, they would be unelected kings because whatever you decided at the ballot box, they would be in charge.

In another article, Vox Political pointed out that money paid to these companies does not benefit the British economy but goes abroad to their foreign headquarters or parent companies. PwC is part-American-owned.

In October last year, this blog stated that if Rachel Reeves had promised to be as tough on tax dodgers, in her previous job as shadow chief secretary to the treasury, as she promised to be on welfare in her first speech as shadow work and pensions secretary, Labour might have a lot more credibility.

The article said that ensuring we get the money that is currently going unpaid by tax dodgers – who are facilitated by firms like PwC – would ease the benefit bill as it would take up a smaller proportion of the national tax take. And now she is taking advice from PwC.

Maybe someone at PwC read the article and decided to take preventative action.

It seems clear that if Labour has any involvement with this company – or allows it to continue working behind the scenes on government business – it will not be in the public interest, and in fact is highly likely to harm the public good.

So we must ask:

Rachel Reeves, what the blue blazes do you think you are doing?

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