Labour shamefully blocks a UN global crackdown on tax havens

Rich and powerful elites have successfully transformed the planet into a plaything for toxic, warmongering billionaires. And by blocking a global attempt to crack down on tax havens, UK Labour Party prime minister Keir Starmer has proved yet again that his compromised government will do nothing to challenge that corrupt, destructive order.

Labour: blocking actions on tax havens at the UN

A clear majority of UN member states – 125 out of 193 – support the tax reform plan which seeks to deal with global tax avoidance. Rich Anglosphere settler-colonial states, however, are at the forefront of opposing the measures. In November, for example, only nine nations voted against adopting “the terms of reference for the UN Tax convention negotiations”, according to Byline Times. These were the UK, USA, Australia, Canada, and New Zealand, alongside Israel, Japan, South Korea, and Argentina.

As Byline Times explained:

The proposal seeks to address an estimated $492 billion annual loss from cross-border “tax abuse” by multinational companies and wealthy individuals.

Recovering lost money would be a big help to the UK’s public purse, but could be a real “gamechanger” for countries in the Global South which have long suffered from colonial plunder:

High-income countries, including the UK, lose the greatest amounts in absolute terms, because they generate the most revenue for firms. But the losses make up a much higher share of potential tax revenues for lower-income countries.

As Sandra Martinsone from NGO network Bond stressed, recovering money could allow developing nations:

to fund accessible quality public services, adapt to and mitigate climate change and, in the long-run, rely less on external (and often debt-inducing) finance.

The UK government as a major obstacle to justice at home and abroad

As Byline Times emphasised over Labour blocking this tax haven action:

The controversy is sensitive for Britain given that the UK and its overseas territories are responsible for approximately one-third of global tax avoidance through firms moving their profits offshore, according to campaigners Tax Justice UK.

In short, the decisions Britain makes regarding tax avoidance have a massive impact globally.

At home, meanwhile, NGOs say the UN’s tax reform plans:

could increase UK tax receipts by an amount equivalent to 20% of the NHS budget

Supporting the efforts, then, could be a significant step in repairing the UK’s public services, which have been decimated by years of funding cuts from governments ideologically committed to weakening public services so private companies can boost their profits.

The British public sorely needs to wake up to the destruction corrupt governments like Labour’s have brought both at home and abroad with their extreme servility to corporate interests.

Featured image via the Canary