FORUM: Taxing question of banks’ billions

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Published: 25 February, 2011
by SARA AYECH

At the weekend anti-cuts campaigners took their protest – and children – to the frontline of Barclays high street bank branches.

SATURDAY last, my four-year-old son and I were among a group of parents and children who occupied a branch of Barclays Bank as part of the “Big Bail-In” day of action held by UK Uncut – the anti-cuts campaigning group.

We held a “breakfast club” in the Tottenham Court Road branch of  the bank to highlight the massive public sector cuts hitting boroughs such as Islington. The Town Hall has had to slice £52million off its budget. It means 700 jobs are to be axed as well as services to foster parents, substance abusers, teenage mothers, children leaving care, battered women, the elderly and disabled people. 

So what is the connection between these cuts and Barclays Bank, and what would motivate responsible parents to take their children on a direct action, albeit a playful one? It is estimated that the UK loses more than £25billion a year in tax avoidance. If even a quarter of this could be clawed back we would be able to avoid the  huge cuts to services which will amount to £18billion over the next four years. 

The cuts in Islington are a direct result of a 26 per cent reduction in central government funding for local council services. 

Over the past few months, UK Uncut has been targeting large companies which either avoid paying UK tax at all or – like Barclays – have avoided paying full corporation tax. 

The protests began as occupations of high street branches of Topshop and Vodafone, and have now moved on to the banks that have profited from the tax-payer-funded bail-out, yet continue to pay bankers massive bonuses. 

Last week, it came to light that, despite announcing profits of more than £11billion for the last financial year, Barclays has only paid £113million in corporation tax: 1 per cent of its profits, rather than the 28 per cent it is supposed to pay. 

Anger grew as we learned that Barclays chief executive officer, Bob Diamond, will be awarded an £8million bonus. 

UK Uncut called for those affected by government cuts to set up “alternative” services in their local branch of Barclays. 

On Saturday, nearly 50 branches were occupied by people who set up libraries, playgroups, a bus and even a comedy club. 

Next weekend it will be the turn of the Royal Bank of Scotland.

Despite the fun had by the children who attended on Saturday – they played games, read books and ate breakfast – we cannot underestimate the seriousness of the loss of these services. 

For working parents, universal, affordable children’s services – the target of cuts in some boroughs such as neighbouring Camden – are a lifeline. 

They enable low- and middle-income families to stay in work, and give children access to high-quality childcare and outdoor space to play. They also play a vital role in creating social cohesion. 

Without them we will see an increase in families on welfare as it becomes impossible for many either to combine a working day with taking and collecting children from school, or to afford private childcare. 

We also risk a rise in youth crime as older children lose contact with trusted and dedicated youth workers: they’ll have nowhere to play but the streets. Parents will also lose out on the sense of community we feel as part of a network of families, nurseries and play centres. 

For me and my son, over the past two years the reduction in nursery provision would have meant that he would have lost out on attending a wonderful nursery near our home.

And on the friends both he and I made, and the vital social skills he learnt which prepared him for school. 

I would have been unable to work full-time, resulting in the loss of vital family income. 

In some cases, boroughs intend to restrict subsidised childcare to the most “vulnerable” and to disabled children, and this will be contracted out to voluntary organisations. 

To lose universality risks socially isolating and ghettoising these children. This is counter-productive and directly opposes all expert advice. 

UK Uncut is holding a “feminist big bail-in” at a central London RBS this Saturday to highlight the disproportionate impact of government cuts on women and childcare.

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