Leaders back call to shun firms avoiding fair share
A call to shun companies which avoid paying their ‘fair share’ of tax has been backed by city leaders.
Sunderland City Council has agreed to back the Fair Tax Mark campaign, which urges local authorities to only do business with firms committed to paying their fair share of tax.
But bosses on Wearside stopped just short of formally signing up to the pledge, promising instead to ‘support the principles’ proposed.
“During the pandemic, we’ve seen the things tax pays for,” said Green councillor Dom Armstrong, who proposed the original motion.
“The NHS, teachers, the armed forces – it’s not smart to not pay your taxes, it’s actually pretty stupid.”
Cllr Armstrong was speaking at a meeting of the full council.
His original proposal had called for the council to ensure ‘not for profit’ arrangements were not abused by council contractors to avoid paying tax.
But an amendment by the ruling Labour Party group added this should only be done ‘where resources allow’ and deleted a commitment to ensure transparency over the ownership of companies doing work for the local authority.
Deputy council leader Paul Stewart insisted it was only a ‘technical amendment’.
He said: “[We] support the clear direction of this, in terms of doing what we can to take a position on tax evasion and tax avoidance. The general thrust of this motion, we are fully supportive of.”
Council leader Graeme Miller claimed the council’s resources were not sufficient to ‘do what the original motion set out, adding it was ‘not weakness, just practical behaviour’.