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Labour right linked to freebies from tax dodging finance firm

LABOUR rightwingers faced mounting pressure last night to reject donations from PricewaterhouseCoopers, after MPs exposed the financial firm’s role helping Britain’s biggest tax dodgers.

Senior party figures such as shadow chancellor Ed Balls, education spokesman Tristram Hunt and business shadow Chuka Umunna have all accepted thousands of pounds’ worth of advice as a “donation” to the opposition.

But Commons public accounts committee (PAC) chair Margaret Hodge MP said the use of such freebie assistance was “inappropriate.”

Her warning comes after a blistering PAC report earlier this week on the activities of the “big four” consultancy firm, which it said had effectively promoted tax avoidance on an “industrial scale.”

Ms Hodge said yesterday: “The Conservatives took money from PricewaterhouseCoopers when they were in opposition, the Labour Party does and probably the Liberal Democrats too.

“I think that’s inappropriate, I wouldn’t do it.”

A host of Labour frontbenchers have sought payment in kind from PwC, which is also heavily involved in commercial work for companies that could stand to win or lose depending on government policy.

Mr Balls has taken £65,000 in services from the firm since March 2014 and continues to do so to this day.

Mr Hunt has accepted researchers to the value of £74,655 since last June to help draw up schools policy, while in the 14 months since September 2013 Mr Umunna has racked up £99,550 worth of PwC assistance.

Overall, members of Labour’s front bench including Rachel Reeves and Tessa Jowell have taken around £600,000 worth of “cash in kind.” 

Most of this has gone to close allies of Tony Blair or current supporters of Blairite Labour faction Progress.

PwC said in a statement that it “has no political affiliation” and did not “develop policy.”

It merely provided “limited and fully disclosed technical support” to parties in areas where it “can help them better understand technical matters and the consequences of their policy proposals.”

A Labour spokesman said the practice “helps ensure better scrutiny of government policy.”

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