Private Eye on the Political Influence of Big Accountancy

In my last post, I criticised the pernicious cross-party influence of the think tanks and lobbying firms. I posted up an article on them from a 2012 issue of Private Eye. That same issue also carried another relevant article, describing the way the big accountancy firms, in this case, PricewaterhouseCoopers were also working for all of the major political parties. They were similarly active promoting their polices of tax avoidance, while avoiding the repercussions for their role in the collapse of banks such as Northern Rock and the development of tax avoidance schemes. The article ran

Anybody wondering why the fallout from recent financial scandals never gets too near the big accountancy firms that are at the heart of so many – the failure to audit collapsing banks properly, the sale of billions’ of pounds’ worth of tax avoidance schemes – will be interested n a few lines from the annual report of PricewaterhouseCoopers (Northern Rock auditor and adviser on Barclays’ tax avoidance schemes, among other lucrative lines).

PwC, it emerges, “provided a total of some 3,454 hours of free technical support to political parties during the year”, valued at £400,000, and made up of “2,622 hours ot the Labour Party and 832 to the Liberal Democrat Party”. In recent years, it reveals, “the trend has been that we have provided more hours to the opposition parties as they have less support infrastructure”.

Small wonder coalition and opposition alike are expanding the opportunities for PwC’s offshore tax schemes (<Eyes passim) and overlooking the obvious need to rein in Britain’s big beancounting operations.

This is exactly correct. Mike over at Vox Political has sharply criticised Rachel Reeves, for example, for accepting the help and advice of the big accountancy firms. This help isn’t free. The cost is the continuing corruption of British politics and the erosion of public confidence in the willingness and ability of their leaders to represent them, not corporate big business.

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One Response to “Private Eye on the Political Influence of Big Accountancy”

  1. A6er Says:

    Reblogged this on Britain Isn't Eating.

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