Under this Conservative Government tax avoidance has increased, meaning less tax raised to help our vital public services rebuild out of the pandemic and the subsequent global energy crisis. Shadow Chancellor, Rachel Reeves MP,  estimates that this gifts the biggest multinationals £131m per week that could be spent on the NHS. The demand on organisations to pay the right amount of tax in the right place at the right time has never been greater. Last year, data from the Institute for Business Ethics saw 'corporate tax avoidance' topping the UK public's list of concerns around business conduct for a tenth successive year. Pursuing better tax conduct benefits everyone by strengthening public services. It is a common-sense agenda since tax receipts help fund vital public services like education, health and social care and policing, making our society fairer, safer and more resilient. We can't build back better, let alone face the challenges of the future, without a properly funded public sector.

Manchester’s Labour Council has led the way through its progressive Ethical Procurement Policy for many years, becoming national best practice for how to do business to maximise social value. The Council became an accredited Living Wage Employer in 2019. It already endorses several causes/initiatives within the Ethical Procurement Policy including the Care Leavers Covenant, the Armed Forces Covenant and the Fair Payments through the supply chain.

The Council has also signed up to various employment charters including the Unison Living Wage for Social Care, the Unite the Union Construction Charter, and the Co-op's calls to end modern slavery.  We have been in discussions with the Fair Tax Foundation and this motion confirms our support of the Councils for Fair Tax Declaration.

The Council resolves to: 

(1)       lead by example and demonstrating good practice in our tax conduct, right across our activities;

(2)       ensure contractors implement IR35 robustly and pay a fair share of employment taxes;

(3)       avoid offshore vehicles for the purchase of land and property, especially where this leads to reduced payments of stamp duty;

(4)       undertake due diligence to ensure that not-for-profit structures are not being used inappropriately as an artificial device to reduce the payment of tax and business rates;

(5)       demand clarity on the ultimate beneficial ownership of suppliers and their consolidated profit and loss position;

(6)       promote the Fair Tax Mark certification for any business in which we have a significant stake and where corporation tax is due;

(7)       ask the Leader of the Council to work with the LGA to lobby government to amend the legislation to allow council's the ability to either penalise poor tax conduct or reward good tax conduct;

(8)       call on the government to close the loopholes on tax avoidance.

By adopting these, Manchester plans to continue to lead by example

Proposed by Councillor Wills, seconded by Councillor Hilal and supported by Councillors Butt, Noor and Ogunbambo

Councillor Wills submitted the following motion, which was seconded by Councillor Oganbambo:-

Under this Conservative Government tax avoidance has increased, meaning less tax raised to help our vital public services rebuild out of the pandemic and the subsequent global energy crisis. Shadow Chancellor, Rachel Reeves MP,  estimates that this gifts the biggest multinationals £131m per week that could be spent on the NHS. The demand on organisations to pay the right amount of tax in the right place at the right time has never been greater. Last year, data from the Institute for Business Ethics saw 'corporate tax avoidance' topping the UK public's list of concerns around business conduct for a tenth successive year. Pursuing better tax conduct benefits everyone by strengthening public services. It is a common-sense agenda since tax receipts help fund vital public services like education, health and social care and policing, making our society fairer, safer and more resilient. We can't build back better, let alone face the challenges of the future, without a properly funded public sector.

Manchester’s Labour Council has led the way through its progressive Ethical Procurement Policy for many years, becoming national best practice for how to do business to maximise social value. The Council became an accredited Living Wage Employer in 2019. It already endorses several causes/initiatives within the Ethical Procurement Policy including the Care Leavers Covenant, the Armed Forces Covenant and the Fair Payments through the supply chain.

The Council has also signed up to various employment charters including the Unison Living Wage for Social Care, the Unite the Union Construction Charter, and the Co-op's calls to end modern slavery.  We have been in discussions with the Fair Tax Foundation and this motion confirms our support of the Councils for Fair Tax Declaration.

The Council resolves to: 

(1)      lead by example and demonstrating good practice in our tax conduct, right across our activities;

(2)      ensure contractors implement IR35 robustly and pay a fair share of employment taxes;

(3)      avoid offshore vehicles for the purchase of land and property, especially where this leads to reduced payments of stamp duty;

(4)      undertake due diligence to ensure that not-for-profit structures are not being used inappropriately as an artificial device to reduce the payment of tax and business rates;

(5)      demand clarity on the ultimate beneficial ownership of suppliers and their consolidated profit and loss position;

(6)      promote the Fair Tax Mark certification for any business in which we have a significant stake and where corporation tax is due;

(7)      ask the Leader of the Council to work with the LGA to lobby government to amend the legislation to allow council's the ability to either penalise poor tax conduct or reward good tax conduct;

(8)      call on the government to close the loopholes on tax avoidance.

By adopting these, Manchester plans to continue to lead by example.

On the motion being put to the vote, the lord Mayor declared it carried

Resolution

The Council resolves to: 

(1)       lead by example and demonstrating good practice in our tax conduct, right across our activities;

(2)       ensure contractors implement IR35 robustly and pay a fair share of employment taxes;

(3)       avoid offshore vehicles for the purchase of land and property, especially where this leads to reduced payments of stamp duty;

(4)       undertake due diligence to ensure that not-for-profit structures are not being used inappropriately as an artificial device to reduce the payment of tax and business rates;

(5)       demand clarity on the ultimate beneficial ownership of suppliers and their consolidated profit and loss position;

(6)       promote the Fair Tax Mark certification for any business in which we have a significant stake and where corporation tax is due;

(7)       ask the Leader of the Council to work with the LGA to lobby government to amend the legislation to allow council's the ability to either penalise poor tax conduct or reward good tax conduct;

(8)       call on the government to close the loopholes on tax avoidance.