Archive for February 20th, 2011

The truth behind the Barclays Corporation Tax furore.

From the Telegraph:

Barclays paid out just £113m in corporation tax in 2009, despite making a pre-tax profit of £11.6bn, according to chief executive Bob Diamond.

The revelation came in a letter to Chuka Umunna MP, a member of the Treasury Select Committee (TSC), who put Mr Diamond under pressure to declare how much of the £2bn in tax paid by Barclays to HMRC was in the form of corporation tax.

The vast majority of the tax paid by Barclays was pay-as-you-earn and national insurance contributions, while corporation tax accounted for 5.7pc of the total bill.

Mr Umunna said it was “shocking” that Barclays had paid so little in corporation tax in 2009.

“This revelation underlines the government’s failure to take the robust action needed to make sure that the banks which caused the crash pay their fair share, and will stick in the stomachs of small businesses struggling to borrow and ordinary people feeling the pinch of the government’s austerity measures,” said Mr Umunna.

See if you can spot the error. A clue is that the present Government only came to power in May 2010.

Hattip to: Working Class Tory

I honestly thought, from the noise the left were making about this, that it was the Tories who let the banks off all the Corporation Tax – and now it turns out that the Labour Party made them this enormous present.

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