Labour chief Miliband uses Google’s UK event to blast big tax evaders

23 May 2013

Ed Miliband, the leader of the UK's Labour Party, today launched another scathing attack on big US conglomerates like Google, Apple, Amazon and Starbucks, which are being probed by lawmakers in Britain as well as the US for evading taxes by offshoring its businesses.

Speaking at Google's Big Tent conference in Hertfordshire, Miliband claimed that these major businesses with low tax bills shared a ''culture of irresponsibility'' with the banks that caused the financial crisis that has crippled economies around the world.

''I have deep problems about the culture and the culture isn't that different from what we saw at some of the banks,'' he said.

''There is a culture of irresponsibility among some of the biggest firms and that's got to change. We can't lecture people on benefits if some of the biggest companies are sending the wrong signals.''

In a speech that hit at the roots of capitalism, Miliband said, ''If capitalism is here to stay, are there any choices left to us? Is it just capitalism? My answer to that is no.

''We do face a choice between an irresponsible capitalism where irresponsibility grows and where we're in it for ourselves. Or where we all face up to our responsibilities ... that's the big choice we face.''

He also argued that the nature of the internet would lead to more responsible business, but added it could create new vested interests that governments should not be afraid to tackle.

Miliband called for more nimble regulation at a European level, reiterating his call for a 'Digital Ombudsman' to regulate potentially anti-competitive businesses, and added that capitalism ''should be about more than adhering to the letter of the law''.

He said he was sorry that Google's executive chairman Eric Schmidt wasn't in the audience to hear his speech, and attacked Prime Minister David Cameron for not raising the issue of Google's tax rate with Schmidt when they met at a No 10 event on Monday.

Deputy Prime Minister Nick Clegg said at the Google event that he did directly raise the issue with Schmidt, telling him there was massive public concern "as Google are finding out" that, at a time of austerity for ordinary households and businesses, big companies should pay their fair share of tax.