Tory backers’ firms using state aid to cover wages

MPs urge PM to copy other nations

COMPANIES owned by wealthy Tory donors are using the Government’s furlough scheme to cover 80 per cent of staff wages.

JCB has furloughed the “vast majority” of its 6,500 staff. It is owned by Lord Bamford, 74, whose family wealth is £4billion.

He has pledged £10million to the Tories, who gave him a peerage in 2013. In September, JCB announced a record turnover of £4.1billion.

Homeware firm Dunelm, whose deputy chairman Will Adderley gave £500,000 to the Tories last year through his private investment firm, have used the scheme for most of its 10,000 staff.

In December, Dunelm announced pre-tax profits of £84.9million as sales soared.

Discount chain B&M briefly closed 49 of its 660 stores and furloughed some staff.

It also stands to benefit from the Government’s threemonth business rates holiday.

Tory donor Simon Arora, and his brothers Bobby and Robin have made about £1billion from B&M, including nearly £230million they trousered from selling some of their shares in 2017.

Homeware store The Range, founded by Chris Dawson, estimated to be worth £2billion, is also using the business rates holiday.

This week ex-Spice Girl Victoria Beckham reversed her decision to furlough 30 staff at her fashion label amid criticism. Thought to be worth £335million, she has £1.5million of handbags.

JCB said it had donated 10,000 meals to vulnerable families in Staffs and the job retention scheme is “vital to companies like us” seeking to find a way through Covid-19.

Dunelm declined to comment. B&M said only 100 of its staff were currently furloughed and it had given more than £1million to food banks in the crisis. The Range was contacted for comment.

PROFITS DOWN Some funeral firms are struggling the Commons last week, Foreign Secretary Dominic Raab ducked the issue.

He said: “We should take some of the partisan language out of this and support workers up and down this country who rely on those businesses.”

International corporations use complex – but entirely legal – “tax efficient structures” to shift income around the world to cut their bills.

Twenty of Britain’s biggest companies operate more than 1,000 subsidiaries in offshore tax havens.

Ministers have refused to say which tycoons with overseas head offices have applied for help in the crisis.

But one mogul asking for a bailout is Virgin Group billionaire Richard Branson – who offered his private Caribbean island Necker as collateral.

Critics have pointed out that he has

FUNERAL bosses are in bailout talks with the Government amid fears firms could go bust.

Simpler funerals forced by social distancing and lockdown rules have slashed profit margins.

At the same time, demand is paid no personal income tax since moving there 14 years ago.

And campaigners have accused the Government of failing to use its own laws to tax big business more.

Since 2016 the Finance Act has allowed the Treasury to demand multinationals come clean about finances on a country-by-country basis.

Tax Justice Network claims officials could have used the law to net an extra £2.5billion every year.

The group’s chief Alex Cobham said: “Now more than ever, governments must reprogramme their tax systems to prioritise people’s wellbeing over the interests of the wealthiest.”

Chancellor Rishi up and costs have risen as staff need protective outfits.

The Co-op, our biggest funeral firm, said: “If volumes continue this will bring a financial strain on the sector as a whole.”

One firm in Nuneaton, Warks, which normally has 60 funerals a month has had 25 bookings a day. Before the crisis, the average cremation was £3,950, while a burial was £4,895. Stripped-down services are now costing £1,000.

The National Association of Funeral Directors confirmed individual firms and trade groups are in talks with the Government. The group said support is needed in the short and long-term “over and above the support available to all businesses”.

The Co-op has not yet made a formal bid for government cash but is “keeping in close touch”.