Tax credit crunch 'culprits', says union leader

Date: 29th September 2008

Those who caused the credit crunch should face higher taxes, not the people who have suffered, a trade union leader has argued.

The joint general secretary of Unite, Derek Simpson, the country's biggest trade union, believes that workers and average families should not be paying for mistakes made by City bankers and financial firms.

The government has already nationalised the lender Northern Rock, with Bradford and Bingley set to follow today (September 29th), meaning a further burden for taxpayers.

Mr Simpson told the Press Association: "The Bank of England are having to bail-out Britain's banks because of greed and excess.

"I say to the government, tax the culprits of the credit crunch, not hard-working families."

He added that the government should follow Barack Obama's example in the US, and commit to closing many of the loopholes that allow those with the "widest shoulders" to avoid paying taxes.

Research by the trade union has shown that avoidance of taxation by British corporations is worth more than £25 billion a year.