Aggressive “tax avoidance” must not cost Worcestershire’s taxpayers, vows councillor
CALLS are being made to change the rules at Worcestershire County Council to prevent any companies from taking advantage of “aggressive tax avoidance” to rip off taxpayers.
Councillor Richard Udall wants bosses at County Hall to review the guidelines when allowing firms to bid for work such as office supplies, specific projects, help with running services or property maintenance.
The Labour veteran says he is concerned about a potential risk of large companies getting by on “tax evasion” to use that unfair economic advantage in securing those contracts.
It comes at a time when the council is now in full swing with its controversial new operating model where it wants to outsource 85 per cent of services by 2018, opening up County Hall to the market even more.
His concerns have been negated by Tory Councillor Marc Bayliss, the cabinet member for transformation and commissioning, who says he would be happy to meet with him to talk it over.
For years the council has made big strides with an online portal, known as e-tendering, which allows outside organisations to bid for the supply of goods and services.
Speaking during a meeting, Councillor Udall asked the Conservative to “confirm all the bidders for contracts compete on a level playing field”
Councillor Bayliss said: “Yes, the procurement processes are managed to provide a level playing field for a wide variety of potential bidders.
“It’s very easy for companies of any size to register on the e-tendering portal to get access to these opportunities.”
Councillor Udall replied: “Aggressive tax avoidance and tax evasion by large companies with expensive accountants can give them an unfair competitive impact on small traders.
“Will he therefore agree to amend all procurement policies to ensure all bidders for these contracts are fully tax compliant?
“We need to hit down on these companies who are using tax evasion to make profit out of taxpayers.”
During the debate Councillor Bayliss said every deal was subject to national law and EU directives on being fair and transparent, saying the council “ensures those principles are embedded” in anything it agrees to.
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He added: “I’ll ask the director responsible to consider the matter specifically about tax avoidance and evasion from large organisations (as) Councillor Udall mentions.”
He then asked the Labour figure to bring forward any evidence if he has it.
