Saturday, February 19, 2011

All In This Together? Not Barclays, Obviously ...

We are all in this together!" say PM David Cameron (pictured) and sidekick Nick Clegg.

Well, obviously that excludes the Banks, who got us into this mess in the first place. Barclays have been forced to announce that they paid a mere £113m corporation tax last year from a profit of £4.6 Billion in 2009.

Those numbers again: £113 Million of £4.6 Billion. That's err... 2.45% as opposed to the regular corporation tax rate of 28%.

Labour MP Chuka Umunna, of the Treasury Select Committee, who requested the detail, described it as "shocking", and went on to say that the revelation showed that the bank was not paying its fair share towards a deficit they had helped create, despite having benefited from the government's rescue of the financial system.

Barclays claimed that "any link between Barclays Group profits and the amount of tax paid to the UK government is inappropriate - there is no direct correlation between the two."

Funny, I thought there always was a link between how much you earn and how much tax you pay.

Barclays chief Bob Diamond keeping silent about his bonus.
Barclays reasoning? - "the amount of corporation tax [we] paid for the year (2009) included losses for the previous year (2008)."

The only way we can test the trueness of this statement is to see what tax they pay from the 2010 year, when Barclays made pre-tax profits of £6.1bn. This time no excuses for 'losses' - or will they find another excuse?

Barclays, of course, paid out £3.4 in bonuses for the 2010 year, including a rumoured £9m to chief Bob Diamond (pictured).

No wonder UKUnCut have been protesting at Barclays branches today.