The figures, to be published in a forthcoming report, are astonishing. Farnsworth takes the financial year 2011-12 and tots up the subsidies and grants paid directly to businesses. They amount to over £14bn – that is, almost three times the £5bn paid out that year in income-based jobseeker’s allowance. Add to that the corporate tax benefits, the value of the cheap credit made available to banks and other business, the insurance schemes run by the government to protect exporters, the marketing for British business laid on by Vince Cable’s ministry, the public procurement from the private sector … Farnsworth calculates that direct corporate welfare costs British taxpayers just shy of £85bn a year. This, he admits, is a conservative estimate. I would throw in the public subsidy provided to too-big-to-fail banks, or the £25bn taxpayers shelled out that year in tax credits, housing and council tax benefits to people in work but not paid enough by their employers to live on. Nevertheless, Farnsworth has achieved something extraordinary: he has yanked into the open an £85bn subsidy that big business and the government would rather you didn’t know about.
Posted on: Tue, 07 Oct 2014 11:49:23 +0000
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