An urgent plea has gone to Tory MP Claire Perry to highlight with Chancellor of the Chequer George Osborne the “sad and sick situation” of Caffe Nero failing to pay any corporation tax on its current £39.9 million earnings.
In the wake of the American coffee bar chain Starbucks offering £20 million tax over two years, Marlborough’s MP has been told how Caffe Nero is actually costing the community money by its equally arrogant attitude over planning.
The company, as it did when it opened in Marlborough High Street in April, has launched new coffee shops without consent all over the country and then demanded planning inquiries every time it was refused retrospective permission – the latest inquiry to be held in January.
Marlborough town councillor Val Compton, who has been leading a boycott campaign in the local community, today wrote to Mrs Perry seeking her help.
“Not surprisingly, there is public fury over the shenanigans of Starbucks, firstly over the ‘legal’ non-payment of corporation tax and now the ‘think of a number’ method of payment,” she told Mrs Perry.
“For those that are struggling to make ends meet this is galling, but our sense of fair play has kicked in at all levels. People turned against Starbucks and it was a most effective way of dealing with it – loss of business and face would affect their profit.”
“Here in Marlborough, part of your Devizes constituency, we are dealing with a smaller version of Starbucks in Caffe Nero, who pay no corporation tax on their last record earnings of £39.9 million because they are registered in the tax haven of the Isle of Man and also in Luxembourg.”
“But their escape from paying corporation tax is equally matched by their arrogant attitude to the planning regulations, opening new outlets without gaining planning consent in advance (it unfortunately happens to be legal) and then seeking retrospective approval once they are up and running and made their mark.”
She significantly points out: “The arrogant attitude means that the community is forced to pay for planning inquiries to be held when Caffe Nero appeals against refusal, in this case for change of use, by the local authority.”
“There have been 17 inquiries in various parts of the country, Caffe Nero winning 16 of them, and now there is to be another inquiry in Marlborough on January 15, the considerable cost of the inquiries falling on the community.”
“While the media is full of reports about Starbucks offering to pay £20 million to the taxman over the next two years, the disgraceful case of Caffe Nero seems to have dropped off the agenda.”
“We need your support in highlighting this disgraceful situation to Chancellor George Osborne as he attempts to bring some equity to the case of morally wrong tax dodgers who are reaping rewards from their enterprise at public expense.”
“Just like Totnes managed to keep out Costa Coffee, I and many others would like to see Caffe Nero ousted. Hence our current boycott campaign.”
And she adds: “I really feel outraged every time I walk past and simply don’t understand how customers can support them – except that they just may not realise what is going on. We need you to raise your voice on this one, Claire.”
“This sad and sick situation has to stop!”
More than 40 Starbucks coffee shops across the country, including branches in London, Bristol, Liverpool and Cardiff, were targeted yesterday (Saturday) by campaigners seeking the highlight the American-based company’s minimal corporation tax contributions.
Supporters from UK Uncut, in their biggest day of action so far, were protesting against the fact that Starbucks has paid only £8.6 million in tax since Starbucks launched its chain of outlets in the UK 14 years ago.
The coffee shop confrontation went ahead despite the promise of Starbucks to pay voluntarily pay £20 million over the next two years to HM Treasury.
“Our customers have been very vocal over the past six or seven weeks,” Kris Engskov, Starbucks’ UK chief, told Sky News. “This is clearly an issue which has struck a chord with the country.”