Big business got a huge win from Philip Hammond’s budget, while workers got shafted

Support us and go ad-free

In his 2017 Budget on 8 March, Chancellor Philip Hammond announced a cut in corporation tax. This will cut the tax from 20% to 19% in April, landing at 17% by spring 2020.

This will mean that, since 2010 (and the last Labour government), corporation tax has decreased by 11 percentage points.

The theory behind the tax cuts is that it will make Britain a more competitive environment, particularly post-Brexit. And more business activity could, in theory, create more jobs.

But many disagree. And it has been claimed that previous cuts to corporation tax cost Britain £5bn a year and delivered diminishing returns.

Meanwhile, various public services would welcome this cash injection:

Who pays?

How will the government make up the billions lost? For a start, it will be hitting self-employed workers. Many self-employed people, already on precarious contracts in the gig economy, will see their National Insurance contributions raised to fall in line with the regularly employed. Hammond believes the difference accounts for £5bn a year.

So while companies like Uber and Deliveroo will save big cash in taxes, their drivers will be paying up:

Is this an economy that really works for everyone?

Get Involved!

– Read more from The Canary on Budget 2017.

Featured image via NATO Summit Wales

We know everyone is suffering under the Tories - but the Canary is a vital weapon in our fight back, and we need your support

The Canary Workers’ Co-op knows life is hard. The Tories are waging a class war against us we’re all having to fight. But like trade unions and community organising, truly independent working-class media is a vital weapon in our armoury.

The Canary doesn’t have the budget of the corporate media. In fact, our income is over 1,000 times less than the Guardian’s. What we do have is a radical agenda that disrupts power and amplifies marginalised communities. But we can only do this with our readers’ support.

So please, help us continue to spread messages of resistance and hope. Even the smallest donation would mean the world to us.

Support us

Comments are closed