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Labour vows to close 'tax scams' used by mega-rich

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Labour vows to close 'tax scams' used by mega-rich

Labour has vowed to close tax loopholes used by the wealthy. 

In a speech at the party's annual conference in Brighton, shadow chancellor John McDonnell (pictured) said he wanted to ensure the rich and corporations 'pay their way' if Labour manages to wrestle power from the Conservatives.

'To pay for those public services we’ll close the tax loopholes and the tax avoidance scams (used) by the mega rich,' McDonnell said. 

'We’re not asking for the earth we simply want to make sure the rich and the corporations pay their way.' 

McDonnell also used his speech to outline Labour's plans to nationalise a range of services, He launched a scathing attack on the 'scandal' of the Private Finance Initiative (PFI), which was launched by previous Tory prime minister John Major in 1992.  

McDonnell claimed PFI had resulted in huge, long-term costs for tax payers, whilst allowing some companies to net 'enormous' profit.  

'Over the next few decades, nearly two hundred billion is scheduled to be paid out of public sector budgets in PFI deals,' McDonnell told the conference.

'In the NHS alone, £831 million in pre-tax profits have been made over the past six years.'

McDonnell said Labour would put an end to the PFI scandal by bringing existing PFI contracts in-house. 

However, there was suggestion that some PFI contracts could remain under a Labour government if the removal of them could cause hardship in certain quarters.   

'Labour will review all PFI contracts and, if necessary, take over outstanding contracts and bring them back in-house, while ensuring NHS trusts, local councils and others do not lose out, and there is no detriment to services or staff,' an official statement from the party read. 

McDonnell also suggested companies registered in tax havens would be blocked from investing in PFI projects. 

'The government would intervene immediately to ensure that companies in tax havens can’t invest in PFI projects and their profits can’t be hidden to HMRC,' he said.

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