Newcastle City Council becomes 20th UK council to back Fair Tax Declaration

By February 17, 2022News
Newcastle

Newcastle City Council has become the 20th council in the UK, and 6th in the North East, to join a growing movement of cities, towns and districts standing up for responsible tax conduct.

Local authorities that approve the Councils for Fair Tax Declaration commit to leading by example on their own tax conduct, demanding greater transparency from suppliers and calling for more meaningful powers to tackle tax avoidance amongst suppliers when buying goods and services.

On signing up to the Councils for Fair Tax Declaration, Cabinet Member for Inclusive Economy, Councillor Joyce McCarty, said:

“By signing the Fair Tax Declaration we are seeking to lead by example. Everyone needs to pay their fair share of tax, especially now when public spending is under such intense pressure, and we need to maintain public services to help people suffering from the cost-of-living crisis.

“As a council with a proud track record of doing the right thing we now match the Living Wage Foundation, so our lowest paid staff are paid a decent wage. Promoting the payment of tax strengthens that commitment to fairness, equality and social justice.”

Paul Monaghan, Chief Executive at the Fair Tax Foundation, said:

We’re delighted that Newcastle City Council is standing up for responsible tax conduct by approving the Councils for Fair Tax Declaration. In doing so, Newcastle City Council is committing to the highest possible standards of tax conduct in its own affairs, and is joining other supporters of the Declaration in calling for greater powers to tackle tax avoidance amongst suppliers.

We know that aggressive tax avoidance negatively distorts local, as well as national, economies and undermines the ability of responsible business to compete fairly, both domestically and internationally. Recent research has found that the UK loses an estimated £17bn in corporation tax revenues as a result of profit shifting alone.

At the Fair Tax Foundation, we believe that ‘good’ tax conduct should be a core public procurement consideration. Not only because it helps level the playing field for competing suppliers and bolsters the national corporate tax take, but it also enables better identification and mitigation of financial and corruption risks by contracting authorities. As recipients of significant public funding, it is right that councils should take the lead in the promotion of exemplary tax conduct”.

 

If you are a councillor, you can find the Sample Motion and Councils for Fair Tax Declaration (in English and Welsh) on our website. Contact our Network Manager, Mary, if you have any questions.

 

 

(Image: Newcastle, Metro Centric shared under CC BY 2.0 license)