Pay your taxes if you want any deals from us, council chiefs tell outside traders

COUNCIL chiefs have vowed to tackle tax evasion in Worcestershire – insisting they will not contemplate deals with those who fail to pay up.

After widespread criticism it was not doing enough, the Government has taken steps to clean up its own policies so it avoids ‘buying’ any services or signing contracts with firms who use offshore tax havens.

Worcestershire County Council will now be making sure the move – known within Whitehall as policy 03/14 – is enshrined in its own procurement methods.

Bosses at County Hall have spent nearly £5 million since 2010 on effectively ‘buying’ services from outside consultants and also hands out scores of contracts on everything from school meals to maintenance.

The Government code only applies to contracts worth £5 million or more, but the Conservative leadership has agreed to bring it to the attention of officers.

A motion was voted though after the opposition Labour group leader, Councillor Peter McDonald, used a full council meeting to heavily criticise offshore tax havens.

“We should not give any company, no matter how large or powerful they are, an advantage over others,” he said.

“All of must not forget that taxes are the price we may for civilisation, it’s intolerable that people manipulate the system in their favour.

“And let’s not forget this county council needs every penny it can get in taxes, the actual issue falls into the realm of ethics.”

He said people who either avoid paying tax altogether, a criminal offence, or use offshore havens are “without doubt immoral and unethical”.

After his plea Councillor Marc Bayliss, the cabinet member for transformation and commissioning, said the principles of the policy had already been embedded into the council’s work.

He re-worded the motion so it made clear the policy matches the Government’s position, saying to use it on deals worth less than £5 million would lead to “excessive administrative burdens” on small firms.

It means for all the larger deals, any bidders for council work must self-certify that they are fully tax compliant with the national guidelines.

The motion was voted through 40-0 attracting backing from the Conservatives, Lib Dems, UKIP, independents and Green Party despite eight Labour abstentions amid some unease about slightly altering the motion’s wording.