A few words on the large government-funded corporations who don’t pay their taxes

[Picture: Another Angry Voice}

[Picture: Another Angry Voice}

Apologies are due to readers for the fact that new articles have been few and far between this week; Vox Political creator Mike Sivier has been occupied with other concerns including work at the Citizens Advice Bureau and campaigning to be a Labour candidate in the 2015 election. Normal service will resume (hopefully) on Monday.

In the meantime, here’s some information from a VP reader (who very kindly asked not to be credited) on some of our favourite private companies with entire fists – never mind fingers – in the public sector pie.

With around half of all public sector spending now paid to private companies, lets look at some facts about the four largest recipients – Serco, Capita, Atos and G4S.

In total, they have received more than £4 billion of taxpayers’ money in the past year, making a cumulative profit of £1.05 billion. This means that, if the work had been carried out within the public sector, the taxpayer would have saved more than a quarter of the money used. That’s a lot of money!

With Corporation Tax currently standing at 23 per cent, let’s look at how much tax they paid: £75 million (around 7.5 per cent).

But the situation is actually worse than that! This is only the tax paid by Capita and Serco.

Atos and G4S paid no tax at all.

Furthermore, none of these companies has successfully delivered the public services they were contracted to carry out, despite having been paid anyway. Did G4S successfully manage security at the 2012 Olympics, or was that the British Army? Did Capita provide adequate court translation services? Has Atos carried out work capability assessments for Employment and Support Allowance in a professional and unproblematic manner? What about Serco and out-of-hours GP services?

These firms have been content to take taxpayers’ money but avoid paying tax on it, and then provided botched services. Two of them – Serco and G4S – are currently under investigation by the Serious Fraud Office for overcharging on electronic tagging of offenders.

It seems we were paying for these companies to monitor 3,000 phantom offenders. They were charging for 18,000 while only 15,000 were being monitored.

Coalition Justice Secretary and part-time clown Chris Grayling told MPs in July that an external audit had revealed the overcharging, which included bills for tracking the movements of criminals who had moved abroad, who were back in prison, who had had their tags removed and even, in a few cases, those who had died.

Even so – and despite sanctions against the companies as a result, the scenario presented in the image (above) is still possible, thanks to the Coalition government.

Outsourcing – a good deal for taxpayers? You decide…

(Source: http://www.theguardian.com/politics/2013/nov/12/public-sector-paid-outsourcing-firms-4-billion-pounds)

9 thoughts on “A few words on the large government-funded corporations who don’t pay their taxes

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  2. Thomas

    Companies do have their place, I’m not a communist, but no company should be allowed to grow too big or to have slave labour working for them.

  3. Joseph smith

    It scares me this creeping privatisation of some of our most sensitive industries, of course we know it’s the Tory way of promoting their wealthy supporters and create well paid future jobs for the MPs who supported and created these opportunities. It stinks! I’ve noticed that this Fascist government are trying to get legislation passed to prevent people gathering and protesting. At the same time our self promoting Prime Minister has pledged £50,000,000 of our pounds to help the Phillipines. Where did that money come from. Non payment of benefits? Reduction in pensions? Closure of shipyards? And the principle benefactor? Cameron, in his future career. This taxpayer paid jolly to Sri Lanka was the most shameful example of Cameron’s self promotion and self importance ever witnessed. All of us are acutely aware that the Phillipines need every single bit of help they can get. What I object to is this, at a time when Britain is undergoing stringent restrictions on expenditure of any kind (excluding MPs pay rise) when legally entitled benefits are being withdrawn, when youth has no work, when our pensioners can eat or keep warm, when our forces are being made redundant in the trenches, Cameron finds £50,000,000 to give away in an act of shameless self promotion. This has nothing whatsoever to do with helping the Phillipines. Cameron cynically saw an opportunity for himself to enhance his international reputation in an act of selfish self promotion. The man is an absolute sham a Fascist supported by arse licking supporters whose only interest is themselves regardless of the cost to us, the public. Get rid of them.

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