Tuesday, 18 May 2010

GMB call for end to private equity tax breaks

With George Osborne due to announce where £6 billion worth of cuts will be made, the trade union GMB has come up with one proposal to help ease the public debt. They suggest ending tax relief on private equity borrowing.

At just one company, the  chemist chain Boots, the tax relief for last year was £230 million - money that otherwise would be going into the public purse if this tax break was abolished. The national figure must run into the billions.

It seems a sensible idea to me but following it through would  entail the ConDem government upsetting some very wealthy backers. Don’t hold your breath. The full story is here.