Uber is a massive American monster that uses its financial muscle and army of Lawyers to threaten, cajole and kowtow licensing authorities and regulators to enable them to operate in breach of all existing licensing laws. Despite making substantial profits, they then avoid paying any tax in the UK by use of complex set ups through Holland and the Bahamas.Boris Johnson has decided not to take any action against Uber but has voiced his discomfort with the company's practices labelling it "excessively bumptious".
Labour's analysis of Uber's tax arrangement's has not gone unchallenged, with observers pointing out the majority of cabbies in London don't pay corporation tax because they are self-employed drivers and not part of a corporation. Furthermore, under the rules of the European single market it is illegal to take into account the national origin of a company when considering whether to grant licences. The Institute of Directors was quick to respond to Creagh's comments, warning against anything that may undermine progress in the industry:
As new technology and innovation continues to change the way we go about our lives, more and more people will be able to take ownership of their labour and get a foothold in the economy. It's exactly this kind of new economy that Uber represents, and politicians should be careful not to demonise Uber drivers.