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You can find the current article at its original source at http://www.theguardian.com/politics/2015/sep/28/labour-google-starbucks-amazon-pay-fair-tax-share-john-mcdonnell
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| Labour 'will make Google, Starbucks and Amazon pay fair tax share' | Labour 'will make Google, Starbucks and Amazon pay fair tax share' |
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| Labour will launch an “aggressive” attack on Starbucks, Vodafone, Amazon and Google to make them pay their share of corporate taxes, Labour’s shadow chancellor has said. | Labour will launch an “aggressive” attack on Starbucks, Vodafone, Amazon and Google to make them pay their share of corporate taxes, Labour’s shadow chancellor has said. |
| Related: Labour conference: McDonnell says Labour will oppose cuts - Politics live | Related: Labour conference: McDonnell says Labour will oppose cuts - Politics live |
| John McDonnell said on Monday that his party would turn the tide on economic discourse in the UK by showing the deficit could be cut without austerity. | John McDonnell said on Monday that his party would turn the tide on economic discourse in the UK by showing the deficit could be cut without austerity. |
| In his first conference speech as shadow chancellor, McDonnell won an ecstatic reception when he said Labour’s plan to “balance the books will be aggressive”. | In his first conference speech as shadow chancellor, McDonnell won an ecstatic reception when he said Labour’s plan to “balance the books will be aggressive”. |
| Promising an adult debate rather than silly slogans, McDonnell said he would commit Labour to increasing taxes if necessary. | |
| “We are embarking on the immense task of changing the economic discourse in this country. We are throwing off that ridiculous charge that we are deficit deniers,” he said. | “We are embarking on the immense task of changing the economic discourse in this country. We are throwing off that ridiculous charge that we are deficit deniers,” he said. |
| “We are saying, tackling the deficit is important but we are rejecting austerity as the means to do it. We are setting out an alternative based upon dynamically growing our economy, ending the tax cuts for the rich and addressing the scourge of tax evasion and avoidance.” | “We are saying, tackling the deficit is important but we are rejecting austerity as the means to do it. We are setting out an alternative based upon dynamically growing our economy, ending the tax cuts for the rich and addressing the scourge of tax evasion and avoidance.” |
| He admitted it was an immense task, but said he was sure “the British people are fed up of being patronised and talked down to by politicians with little more than silly slogans and misleading analogies”. | He admitted it was an immense task, but said he was sure “the British people are fed up of being patronised and talked down to by politicians with little more than silly slogans and misleading analogies”. |
| Pleading for those Labour MPs who had refused to serve under Jeremy Corbyn to come back, he said they would have the opportunity to debate in solidarity and freedom. | Pleading for those Labour MPs who had refused to serve under Jeremy Corbyn to come back, he said they would have the opportunity to debate in solidarity and freedom. |
| He said the party would only back a financial transaction tax on the City if it was adopted by other countries. This stance will be a relief to the Labour candidate for the London mayoralty, Sadiq Khan, who is trying to reassure the finance industry and businesses that Labour would not be a threat. | |
| McDonnell said Bob Kerslake, the former head of the civil service, would review the operation of the Treasury. Lord Kerslake regularly disagreed with George Osborne and David Cameron during the coalition government, as well as having disagreements with the cabinet secretary. | |
| The shadow chancellor also announced a review of the Bank of England mandate, saying it would be broadened to include a wider economic duty to secure growth, as opposed to just controlling inflation. | The shadow chancellor also announced a review of the Bank of England mandate, saying it would be broadened to include a wider economic duty to secure growth, as opposed to just controlling inflation. |
| Related: John McDonnell defends public right to protest | |
| McDonnell, who had said before his speech that it would be dull and “as exciting as a bank manager’s address”, opened by saying it was not a rant, but contained serious messages about the need to create an entrepreneurial state, reject austerity politics and break with neo-liberalism. | McDonnell, who had said before his speech that it would be dull and “as exciting as a bank manager’s address”, opened by saying it was not a rant, but contained serious messages about the need to create an entrepreneurial state, reject austerity politics and break with neo-liberalism. |
| He also vowed to cut the billions in tax breaks given to buy-to-let landlords. | He also vowed to cut the billions in tax breaks given to buy-to-let landlords. |
| Referring to a clampdown on corporate tax avoidance to narrow the deficit, he said: “We will force people like Starbucks, Vodafone, Amazon and Google and all the others to pay their fair share of taxes. | Referring to a clampdown on corporate tax avoidance to narrow the deficit, he said: “We will force people like Starbucks, Vodafone, Amazon and Google and all the others to pay their fair share of taxes. |
| “Let me tell you also, there will be cuts to tackle the deficit but our cuts will not be the number of police officers on our streets or nurses in our hospitals or teachers in our classrooms.” | “Let me tell you also, there will be cuts to tackle the deficit but our cuts will not be the number of police officers on our streets or nurses in our hospitals or teachers in our classrooms.” |
| Setting out his plans for tax rises, he said: “Where money needs to be raised it will be raised from fairer, more progressive taxation. We will be lifting the burden from middle- and low-income earners paying for a crisis they did not cause. | Setting out his plans for tax rises, he said: “Where money needs to be raised it will be raised from fairer, more progressive taxation. We will be lifting the burden from middle- and low-income earners paying for a crisis they did not cause. |
| “If we inherit a deficit in 2020, fiscal policy will be used to pay down the debt and lower the deficit but at a speed that does not put into jeopardy sustainable economic growth. | “If we inherit a deficit in 2020, fiscal policy will be used to pay down the debt and lower the deficit but at a speed that does not put into jeopardy sustainable economic growth. |
| “We need to prove to the British people we can run the economy better than the rich elite that runs it now.” | “We need to prove to the British people we can run the economy better than the rich elite that runs it now.” |
| But McDonnell insisted he remained committed to anti-austerity politics, saying “austerity is also not just a word for the 100,000 children in homeless families who tonight will be going to bed not in a home of their own but in a bed and breakfast or temporary accommodation”. | But McDonnell insisted he remained committed to anti-austerity politics, saying “austerity is also not just a word for the 100,000 children in homeless families who tonight will be going to bed not in a home of their own but in a bed and breakfast or temporary accommodation”. |
| Labour would enact cuts to the corporate welfare system, he said, including “cuts to subsidies paid to companies that take the money and fail to provide the jobs”. | Labour would enact cuts to the corporate welfare system, he said, including “cuts to subsidies paid to companies that take the money and fail to provide the jobs”. |
| Related: Neither Corbyn nor his critics want to fire first shot at Labour conference | |
| On personal quantitive easing, McDonnell said: “We’ll use active monetary policy to stimulate demand where necessary.” | On personal quantitive easing, McDonnell said: “We’ll use active monetary policy to stimulate demand where necessary.” |
| He then set out plans for an active industrial strategy led by the Department for Business, Innovation and Skills, saying it would “require patient, long-term finance for investment in research from an effectively resourced and empowered national investment bank”. | He then set out plans for an active industrial strategy led by the Department for Business, Innovation and Skills, saying it would “require patient, long-term finance for investment in research from an effectively resourced and empowered national investment bank”. |
| McDonnell defended plans to bring the railways back into public ownership, saying: “It seems the state nationalising our assets is OK with the Tories as long as it’s the Chinese state or, in the case of our railways, the Dutch or French.” | McDonnell defended plans to bring the railways back into public ownership, saying: “It seems the state nationalising our assets is OK with the Tories as long as it’s the Chinese state or, in the case of our railways, the Dutch or French.” |
| The response of the business sector to McDonnell’s speech was unenthusiastic. John Cridland, the CBI director general, said: “The shadow chancellor was strong on intent but has not yet provided great detail on how he intends to deliver his plans. The overall impression of this speech was of rather more intervention in the world of business and the economy. | |
| “What’s clear to us is that you can’t be pro-growth and pro-jobs without being pro-business. And a thriving private sector is essential for raising living standards and paying for high-quality public service.” | |
| John Longworth, the director general of the British Chambers of Commerce, said: “There is a difference between an entrepreneurial state – one that supports growth and innovation – and a big state, reaching into and directing every facet of business and national life. | |
| “As it develops its economic policies, the leadership of the Labour party must not confuse supporting growth with state control over the economy.” |