Keir Starmer under pressure to back plans for corporation tax rise
February 25, 2021, 12:25 pm

Keir Starmer under pressure to back plans for corporation tax rise

Starmer’s stance has prompted some unease within his shadow cabinet.

Labour leader has faced backlash after saying he would oppose any new tax on business in budget

Keir Starmer is under pressure to back future rises in corporation tax after a backlash when the Labour leader said he would oppose any new tax on business in next week’s budget.

Treasury officials are believed to be looking at increasing the tax on company profits from the current rate of 19% to up to 25% as the government tries to recoup some of the massive debts incurred during the pandemic, though the rise may be delayed until later in the parliament.

During prime minister’s questions on Wednesday, Starmer said: “Now is not the time for tax rises on families and businesses.”

The shadow business secretary, Ed Miliband, has previously backed moves to increase UK corporation tax – which is the fourth lowest among the 37 member countries in the Organisation for Economic Co-operation and Development (OECD).

Labour appeared to soften its position on Wednesday night, suggesting the party would back a steady minimal increase later in the parliament. A source said: “Let’s look at what the chancellor brings forward: if he’s talking about corporation tax going up gradually across the parliament to an OECD average, that’s one thing, but we don’t think there should be tax rises right now where the focus should be supporting business investment and growth.”

The stance prompted some unease within the shadow cabinet. One Labour frontbencher said they believed it would change, saying: “Not totally convinced … This is a pretty progressive tax policy that I don’t know if we should be opposing. I’m not sure the position today will be the one we end up with.”

But another shadow cabinet source said they thought the expected rise in the budget was “kite flying”. Labour’s line was that tax rises were wrong “right now”, the source said, with any rise in corporation tax likely to come into force later in the parliament.

Three other shadow cabinet sources confirmed to the Guardian that they backed the approach to oppose a corporation tax hike next week. One said: “We’ve said for months we will oppose any rise in this budget and it’s consistent with what we’ve been saying that tax rises now will stifle our recovery. The Tories are turning their backs on business and under new leadership there is a new relationship with business.” A source close to Miliband said he backed Starmer’s caution.

On Wednesday Starmer pushed the prime minister to act on council tax rises and businesses rates relief, saying: “Now is not the time for tax rises on families and businesses.” The exchange was likely aimed to drive a wedge between Boris Johnson and his MPs, many of whom are likely to oppose a rise in corporation tax.

The shadow Treasury minister James Murray, appearing on the BBC on Wednesday afternoon, said the party would not back any tax rises. “We’re in the middle of an economic crisis, and this is not the time to do it,” he said. “If you have a country where businesses are closing, where people don’t have money to spend in the economy and where you haven’t got investment going into public services and infrastructure, that is no way to get the country back on its feet.”

A number of Labour MPs expressed alarm at the position, including backers of Starmer. Stella Creasy said Labour should always back ways to make the system fairer.

“A fairer tax system was our ambition before the pandemic, and will be critical to our recovery after as we pick up the pieces,” she said. “We’ve seen several major corporations make substantial profits as a direct consequence of the pandemic – the same companies who will also benefit from the impact of government support getting those who have been hit by redundancy and debt back on their feet.

“But for that to happen those schemes need to be funded now to stop any more families and small businesses from going under. It’s right that we look at our corporation tax rates and capital gains taxes and ask how and when those with the broadest shoulders can contribute a bit more to the task of rebuilding our nation.”

Another former minister said the party should be actively talking up the creation of a windfall tax for businesses that had profited from the pandemic. “Increasing corporation tax does not affect hard-up firms,” they said. “It’s economically illiterate.”

Starmer’s comments prompted more explicit criticism from the party’s left. A spokesman for the grassroots group Momentum, which championed the former leader Jeremy Corbyn and has been critical of Starmer, said: “During the pandemic big corporations like Amazon have cashed in while working people struggle to get by. Labour should support both raising corporation tax and a special Covid-19 windfall tax for sectors that have made super profits.”

Richard Burgon, the former shadow justice secretary who is secretary of the Socialist Campaign Group of MPs, said: “The question facing all politicians now is: who is going to pay for this crisis? And if we don’t have an answer for that, then we are in a position where Labour doesn’t have an answer to one of the biggest questions facing us. The prime minister rejected my call for a windfall tax. But Labour has to make clear that the super-rich corporations who have increased profits pay their fair share to bringing the end to this crisis.”

source: Jessica Elgot

Levant

Boris Johnson sets up committee to focus on keeping UK together Israel administers first COVID-19 vaccine dose to 50 pct of population

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.