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Some thoughts on the UK Uncut demonstrations

January 3, 2011 Leave a comment

Stolen from Django’s blog on LibCom.org.

The UK has seen a wave of high-street demonstrations under the banner of the UK uncut campaign, many of which have been organised locally following call outs distributed through the internet. The protests have seen a number of stores associated with Tax-Dodging picketed, occupied and flyered in cities and towns up and down the country.

The targets of the campaign have been pretty specific. The most high-profile company to be taken on has been the UK-based telecoms giant Vodafone, which is the most profitable mobile phone operator in the world. Earlier in the year veteran investigative magazine Private Eye broke a story on Vodafone’s successful tax-dodging, which had involved setting up a subsidiary company in Luxembourg purely to route profits from the company’s acquisition of Mannesman through a country with a more agreeable tax regime. After a lengthy legal battle, which apparently was going HMRC’s way, the taxman agreed to let Vodafone pay a tax bill of £1.2 billion, rather than the full £6 billion in estimated tax. Vodafone have since dismissed the £6 billion figure as a “urban myth”, despite the fact their accountants projected for it in their own bookeeping. Understandably, the story produced a groundswell of anger, of which these demonstrations are a product.

Target number two is head of the Arcadia group empire – and author of the Efficiency Review advising the government on how to shape its cuts – Sir Philip Green. Green, who made his fortune on the back of workers in South Asia working 12 hour shift for poverty wages, took home a paycheck unprecedented in UK history when in 2005 he paid himself £1.2 billion. This was paid to his wife, living in the tax-haven of Monaco so as to avoid tax.

The demonstrations have garnered a good deal of attention from the authorities and the media, both of whom have launched investigations into the “ringleaders” of the protests. On their own, the demos have caused a fair bit of disruption, and brought the fact that the same government seeking to impose historic cuts in the standard of living in the UK is also allowing its friends in business to avoid fulfilling their tax obligations, if nothing else shattering the great lie that “we’re all in this together”.

There are evidently positive aspects to the protests, but some of their limitations are immediately striking. Fundamentally, the protests don’t push beyond the logic of social democracy, in fact, playing devil’s advocate one could go further and argue they are compatible with a right-wing populist analysis of the crisis: tax-avoiding multinational companies are sucking money from the country, unlike the hard done-by ‘British taxpayer’, forming another fundamentally alien parasite on the country’s back – add it the the list with the EU, immigrants, etc…

Furthermore, the basic logic of the callouts is the need to uphold the rule of law – these companies have a legal obligation to pay their taxes, which they shirk. This much is stated up front by UK Uncut, who, styling themselves as “big society revenue and customs”, state that “if they won’t chase them, we will”. Essentially, the argument as it stands is for the state to live up to it’s promise and to actually deliver on the idealised face of its material function. The role of the state in capitalism is to underwrite the functioning of the capitalist market. The state is a prerequisite of capitalism in that the ability to guarantee private property rights and therefore the ability to buy and sell requires a legal and judicial system and repressive state body there to make those rights possible. What makes any property yours or mine, but much more importantly what makes the property of the capitalist his is ultimately the ability of the state to adjudicate and guarantee that he can dispose of his accumulated wealth as he pleases. In practice this means the need to mediate parties and maintain the social fabric in the face of potential unrest – translated into bourgeois ideology in its current, successful iteration as an even-handed regime of “fairness” where we are all taxed, prosecuted, and end up on the receiving end of cuts fairly. Witness every political party attempting to outdo one another by positing the “fairness” of their plans for the economy and attacks on working class living standards in the UK. The state is a subject of criticism because it fails to fulfil its promised role correctly, not because this promised role, along with the toleration of tax avoidance and the regime of austerity all step from its role as a key actor in the continued existence of capitalism.

However, saying this is not to dismiss these protests out of hand or deny they have positive aspects that can be built on, and that there is no space for growth and dialogue. To remain aloof to nascent movements and all the inevitable contradictions real people in the real world bring with them as they become politically engaged is to condemn ourselves to irrelevance.

One positive feature of the demonstrations is the fact that protesters in many cases are willing to create disruption as a tactic. Effective direct action, be it in the form of strike action, demonstrations or occupations is effective by virtue of its ability to disrupt the normal functioning of society. In a society entirely based on the accumulation of capital, this means the disruption of the economy. Occupations of high-street stores have the capacity to inhibit buying and selling and affect directly the normal working of parts of the economy. If we are to effectively resist these cuts, we will have to recognise that ultimately symbolic protests and petitioning representatives to manage capitalism differently isn’t going to cut it. The rowdier of the UK Uncut protests have involved high-street linchpins like Topshop being effectively shut down and unable to trade. Such disruption needs to take the form of mass action, and links need to be built with shop workers – the vanguardist paradigm of a few activists on an “action” supergluing themselves to things is no basis for a mass movement.

Another positive aspect of the protests – with qualification – is the fact that the line spun by the government, opposition and media on the ultimate inevitability of the cuts agenda is being rejected. Clearly, the “there is no alternative”, “Britain is bankrupt” line on cuts to public services isn’t washing with people, and with good reason – it’s hardly a convincing argument when HMRC is haemorrhaging billions in unpaid tax. This rejection is obviously positive. However, this needs to be qualified. Ultimately, if those on the receiving end of these attacks feel the need to balance the state’s books on capital’s behalf by offering alternate solutions to Britain’s deficit there is a problem. Firstly, because we can question the degree to which public debt is a “problem” for capital anyway, as opposed to an integral part of the functioning of states in today’s world which is neither inherently “good” or “bad”.[1] Secondly, the overall subordination of everyday life and our needs to those of the economy needs to be questioned. Many attacks on tax-avoidance take the desirability of a healthy national economy as a given, with tax-dodging companies being seen as at least in part to blame for capitalism’s present difficulties.

Of course, nascent movements are going to be full of contradictions. People don’t develop a perfect analysis (if such a thing exists) overnight, and any mass movement against the cuts that may appear is going to be full of all kinds of illusions in social democracy, the labour party, the petitioning of our representatives, the rule of law and order and so on. Communism is the real movement against things as they are, and role of communists is to draw out the elements of movements like this which have potential, and agitate for their development and advancement. There remains the possibility of escalation and radicalisation, that participants in such campaigns can move beyond the initial limitations they have. There are a number of positives to such protests which can be built on without tempering criticism, and the role of communists should be constant engagement and dialogue.

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1. http://libcom.org/library/public-debt-makes-state-go-round

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