Updated 7:53am 12 February 2013

Wirral Council urged to ban tax-avoiding businesses

COMPANIES which avoid tax or  blacklist workers could be  banned from competing for  lucrative contracts under  proposals to be considered by a  Merseyside council.

Senior Liberal Democrat  councillor Stuart Kelly is urging  Wirral council to back the plans  when they come before the next  full meeting of the authority.

They call on the council to “to  strengthen its procedures” to  ensure only companies who run  their businesses in an “ethical  way” can be considered for  council work.

The Oxton councillor has  written two motions to go before  the full council. One calls for  companies using these tactics to  be banned from the authority's  approved list for future  construction work.

The second would require  Wirral council to work with the  Local Government Association  to strengthen processes for  selecting companies "bidding for  the delivery of public service  contracts to demonstrate high  ethical, environmental and  anti-tax avoidance standards".

Cllr Kelly said: "Two issues  which have made people angry  recently are the way many large  companies are finding legal  means of avoiding paying a fair  share in tax, and the scandal of  the discovery of the existence of  a ‘blacklist’  discriminating  against members of trade  unions.

"We need to ensure that the  companies being paid with tax  payers money pay their fair  share of tax in the UK, are not  connected with any off-shore tax  havens, and do not discriminate  against groups of workers

"Millions of people and  businesses who pay their taxes,  work hard, aspire to do the right  things for themselves and their  families and are quite rightly  angered when these practices  are uncovered – giving good  ethical businesses a bad name.

"Wirral Council procures  millions of pounds of goods and  services a year, and it is  important to ensure that the  companies it awards contracts  to are playing by the same tax  rules as Wirral taxpayers.

"Putting new guidelines in  place will reassure local council  tax payers that their money is  not being used to prop up  organisations unethically,  hiding their money overseas or  involved in operating  blacklisting.”

Related stories

From around the web

Share