A WHOPPING £110 billion of tax giveaways will have been handed to corporations by the end of this Parliament in a "bonanza for big business," Labour revealed today.
New analysis of official figures on the anniversary of the Con-Dem policy coming into force has shone a light on the reality of the coalition’s 2010 decision to cut corporation tax.
On June 22 of that year the coalition reduced corporation tax from 28 per cent to 24 per cent over the next half-decade and small profits rates from 21 per cent to 20 per cent.
The figures suggest that, as a result of tax cuts for corporations and big businesses, coupled with the huge growth in public sector cuts, the richest in society will have been granted £110 billion by 2022.
The data shows financial damage from the “economic stimulus”package to be extensive across the board.
NHS providers in the ambulance, acute and mental health services will end the 2017/18 tax year with a combined deficit of £960 million — £464m above what was expected in the annual projections of NHS trusts.
And £6.3bn has been cut from social care since 2010, with research from the Institute for Fiscal Studies showing that council spending on adult social care is nearly 10 per cent lower per person.
Youth services have been heavily damaged, as over 1,000 Sure Start centres have closed since 2010, and councils face a £2bn funding gap for children’s services.
Education funding has also fallen by 14 per cent in the past eight years — alarmingly, the number of local education authorities in deficit has trebled to over one in four over the past four years.
Commenting on the statistics, Labour shadow chancellor John McDonnell said they demonstrate how eight years of Conservative administration have been a “bonanza for big business and a catastrophe for our communities.
“The Tories, aided and abetted for years by the Liberal Democrats, have handed out billions of pounds in tax giveaways, while slashing funding for our vital public services.
“They have left our schools so starved of cash that teachers are begging parents for money, taken police off the streets and left our NHS and social care in crisis.
“The latest announcement for health falls short of what is needed and the Chancellor says there is no money for anything else, because he has handed it out in corporate tax giveaways.”
Mr McDonnell guaranteed that the next Labour government will tax corporate millionaires and big businesses in order to “rebuild and transform” Britain.
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