Link to this page: https://archive.socialistparty.org.uk/issue/1154/33252
From The Socialist newspaper, 3 November 2021
Race to top for bankers
photo Fibonacci Blue/CC (Click to enlarge)
Nick Auvache, North London Socialist Party
Tory chancellor Rishi Sunak slashed a tax on banks' profits by 60% in his autumn budget statement, shortly after removing the £20-a-week Universal Credit top up and announcing that National Insurance contributions will rise by 1.25 points.
This clearly shows the rank hypocrisy of the government's so-called 'levelling up' agenda. On the one hand, Johnson says he wants wages to rise, on the other he imposes higher taxes for workers and a brutal reduction of Universal Credit. At the same time, Sunak gifts a multi-billion pound early Christmas present to bankers!
The bank surcharge was introduced on profits over £25 million in 2015. It was an attempt to quell mounting political pressure against a broken capitalist system and the excessive profits of the few amid growing poverty for the many.
The effects of the same pressure were shown internationally, when in June the G7 nations agreed a global minimum corporation tax rate at their summit. Since then, the Pandora Papers have revealed those same capitalist states, including Britain, ignore astronomical levels of tax avoidance and money laundering.
Rishi Sunak defends his bank surcharge cut from 8% to 3% as of April 2023, by claiming it is needed for the British finance industry to be able to continue to compete on a world stage. The Tory government's City minister also defends this latest step by explaining: "To be competitive, we have to have competitive tax rates." It is estimated that this tax reduction will result in a loss of £1.5 billion for the Treasury. A further indication of how wealth is trickling up from the poor to the rich.
It's a race to the bottom for workers and a race to the top for bankers. In order for us to remain competitive, workers are told we have to accept lower wages. But the same logic is turned on its head for international bankers! The logic of capitalism is based on the private ownership of vast amounts of wealth by a tiny few. We need a system based on the democratic public ownership of the world's resources - that is the logic of socialism.
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In The Socialist 3 November 2021:
Socialist change to end climate change
Fight for socialism to end climate destruction
COP26 begins - workers strike for pay
COP26 News in brief
Why I joined the Socialist Party
Fund the fight for a socialist world
Sheffield students tirelessly campaigning for socialist change
Hackney children's centres: Campaigners see through council deception
East London gentrification plans exposed
Fight for a real wage rise for all
Local government cuts set to continue - we need councillors prepared to fight
Race to top for bankers
Fight for a £15-an-hour minimum wage and an end to youth rates
Water companies put profits before protecting our environment
Tories threaten arts students: we are prepared to fight back!
Tory Universal Credit crumbs no solution to cost of living crisis
Tory plans won't fix social care
Pay freeze lifted for civil servants - prepare now for the struggle for a decent rise
NEU: Strategy needed to bring members together to take national action
Oaks Park school strike spurred on by head's lies
Scunthorpe scaffs strike into fifth week
Unite leaflets supermarkets to build support for Weetabix fire and rehire strike
Plant engineers pay dispute
Sexism, safety and the profit system
Sudan - mass protests and general strike against coup
Chile: International solidarity campaign to free political prisoners
Vaccine inequality - the ugly face of capitalism
Hunger strike in Calais for refugee rights
Protests against Sudan coup reach Britain
The Socialist 3 November 2021 |
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