Is the money you pay in council tax ending up in the pockets of oligarchs, or hidden in offshore tax havens? Unbelievably, despite their best efforts, local councils still don’t have the legal powers they need to stop this from happening.
The current rules around procurement – how councils choose what companies they use to receive and provide services – have led to some councils being legally forced to choose the cheapest provider, even if that provider uses unethical business practices.
Currently, councils have very limited legal scope to take into account “social value” when awarding contracts. This can mean councils are forced to choose providers who do not pay the living wage, make use of tax havens, or contribute significantly to climate change.
The result is that many councils are now legally tied to companies like Gazprom – the Russian state-backed energy company – and are facing potential legal action if they cut their ties. But despite the Gazprom scandal, Jacob Rees Mogg recently argued that the Government should have even less ability to account for social value.
That’s why we’re calling on Michael Gove as the Secretary with responsibility for local government to commit to changing the rules so that your council tax money doesn’t end up in the hands of oligarchs or tax avoiders. Will you join us, and add your name to our petition?