July 03rd, 2020

Below is the text of a letter, signed by Church Action for Tax Justice and a coalition of organisations, calling on the government to apply socially responsible conditions to corporate bailouts. We believe that now is the time when in exchange for taxpayer money, we can ensure that companies pay their fair share of tax, prioritise people and planet over profit, and ensure fair pay conditions.

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The Rt Hon Boris Johnson MP 
Prime Minister 
10 Downing Street 
London 
SW1A 2AA
 
Cc: Rt Hon Rishi Sunak MP, Rt Hon Sir Keir Starmer MP, Rt Hon Ian Blackford, Rt Hon Sir Ed Davey MP, Elizabeth Saville-Roberts MP, Caroline Lucas MP
 
3 July 2020
 
Business bailouts must build an economy that works for everyone
 
Dear Prime Minister
 
The Government yesterday announced a bailout loan for Celsa steel, including conditions for the company on employment, climate change and tax use. This is bold action to support a vital business for the UK economy. But as we wait for full details of the loan conditions, we are concerned that all future Government support for businesses serves the wider public good.
 
Deciding to bail out major companies offers a crucial moment for redefining the rules of business behaviour in the post-Covid economy. Will we prioritise a fairer, more secure and sustainable economy, or will we deepen existing inequalities and increase our vulnerability to shocks?
 
We believe that all bailouts should be conditional on meeting wider social goals. Public money must not be channeled into inflated executive salaries. Climate targets and environmental protection must be hardwired into business performance. And companies must commit to building a healthier, more equal society: paying their share of tax, creating good jobs that are paid fairly, and eliminating racial, as well as gender, discrimination in their pay structures.
 
This is the moment for a new deal that prioritises what matters most to ordinary people: their pay, their taxes, the natural world around them, and equality within their communities. As such, we ask that any businesses receiving financial support must be required to: 

• Adopt near-term climate targets in line with the Paris Agreement and clear, transparent plans to meet them, without reliance on offsetting
• Prioritise job retention
• End artificial tax avoidance arrangements and tax haven structures, publicly disclose where profits are made and who benefits, and publish their tax policy
• Implement a moratorium on dividend payouts and share buybacks for the duration of the coronavirus crisis
• Make a commitment to fair pay and restrict the gap between the least and the most paid
• Ensure pay auditing processes include ethnicity pay gap reporting. 

 
In addition, Government must conduct a meaningful Equality Impact Assessment of all business support programmes and must publish the findings. 
 
The Covid-19 pandemic has highlighted in stark relief the inequality and fragility in our economy. Going back to ‘normal’ would only leave us more vulnerable to future shocks. We call on you to ensure that businesses play their part in building a more secure, fair and sustainable future for everyone.
 
Yours sincerely,
Carys Roberts, Executive Director, Institute for Public Policy Research
 
On behalf of 
Dr Justin Thacker, National Coordinator, Church Action for Tax Justice
 
Rob Harrison, Director, Ethical Consumer
 
Paul Monaghan, Chief Executive, Fair Tax Mark
 
John Sauven, Executive Director, Greenpeace UK 
 
Luke Hildyard, Executive Director, High Pay Centre
 
Miatta Fahnbulleh, Chief Executive, New Economics Foundation
 
Robert Palmer, Executive Director, Tax Justice UK
 
Richard Murphy, Director, Tax Research UK
 
Dr Wanda Wyporska, Executive Director, The Equality Trust
 
Dr Katherine Trebeck, Advocacy and Influencing Lead, Wellbeing Economy Alliance 
 
Mary-Ann Stephenson, Director, Women’s Budget Group 
 
Will Stronge, Director, Autonomy
 
Danielle Paffard, Build Back Better
 
Neil McInroy, Centre for Local Economic Strategies
 
Mathew Lawrence, Director, Common Wealth
 
Colin Hines, Convenor, Green New Deal Group
 
Hannah Martin, Co-Exec Director, Green New Deal UK 
 
Fran Boait, Executive Director, Positive Money