TaxCorporate TaxLetwin slams Brown’s ‘silly’ tax breaks

Letwin slams Brown's 'silly' tax breaks

Shadow chancellor Oliver Letwin has called for the scrapping of VAT concessions granted to financial services businesses which outsource jobs overseas.

Link: VAT sword hangs over outsourcing

Speaking on BBC Radio 4’s Today programme, Letwin went for the jugular, describing the incentive scheme as ‘Gordonomics at its sillest’.

‘In the interests of squeezing every penny he can out of British business, he is participating in the destruction of British jobs,’ Letwin said.

Under the scheme, banks, insurance companies and other financial institutions receive a 17.5% subsidy if they employ people offshore.

Currently many finance houses have outsourced their call centres to places like India, which provides a substantially cheaper service.

Gordon Brown will deliver his Budget speech in just over a month’s time, on 17 March.

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