Richard Branson’s request for £500m of taxpayers’ money to help his Virgin Atlantic airline survive the coronavirus pandemic has received widespread criticism from campaigners and politicians.
In an open letter to Virgin employees, Branson, who owns 51% of Virgin Atlantic and is the 312th richest person in the world with an estimated $5.2bn (£4.2bn) fortune, told staff the company desperately needs government support to help it “survive this massive battle and save jobs”:
Together with the team at Virgin Atlantic, we will do everything we can to keep the airline going – but we will need government support to achieve that in the face of the severe uncertainty surrounding travel today and not knowing how long the planes will be grounded for.
However, in encouraging the government to reject his plea, the Virgin boss’ critics have pointed to his massive personal wealth and the fact that Branson has not paid any tax in the UK for 14 years.
Angela Rayner, deputy leader of the Labour party, tweeted: “Richard flog your private island and pay your staff, we are in unprecedented times here. Now is the time your staff need support after making mountains of cash for the company.”
In a letter published in The Times, senior members of the clergy urged the UK government to follow the lead of the Danish, Polish and French governments in refusing to provide state support to companies registered in tax havens:
During this crisis many of the most vulnerable people in our society are paying the price for a health and welfare system woefully unprepared for an epidemic. Meanwhile, some large corporations continue to avoid responsibility, making huge profits yet hiding their wealth in tax havens.
Virgin Atlantic is registered in the UK, but Branson’s holding company Virgin Group is registered in the British Virgin Islands, where there are no taxes. Branson has not paid personal UK taxes since he moved to the Islands 14 years ago, apparently out of a love for the landscape.
Well-known businesswoman Karen Brady, who appears on BBC’s The Apprentice, said:
There are several reasons why his request is, frankly, outrageous. Part and parcel of owning a business is that you are responsible for bailing it out with your own money, or with a loan from the bank, putting up the business and brand as collateral. That’s what banks are there for — it’s why they were invented. But, just to be clear, Sir Richard is the 312th richest person in the world with an estimated £4billion fortune, according to the Bloomberg billionaires’ index. With that kind of money, he could bail out his own business.
Last week, Chancellor Rishi Sunak rejected Branson’s appeal, stating that Virgin Atlantic must first attempt to raise some of the money by itself. He did not, however, rule out a bailout indefinitely.
Since then, Branson has pledged to inject $250m into Virgin Group, his empire that stretches from planes and trains to health clubs and spaceships and employs 70,000 people. The $250m pledge – of which $100m is thought to be earmarked for the airline – is 5% of his fortune.
Thousands of staff across the Group, including 8,000 working for Virgin Atlantic, have been put on extended leave or asked to take voluntary redundancy.
Featured image: Little Rock.
I physically feel sick looking at this man! He is a disgrace and a total dick!
Pays no tax … errrrrr how does he dodge that then!
Must know some very high people in high places to get away with that funna!
Nothing’s changed has it really ……
An arrogant rich and a humble poor both need help! The former needs help to be human; the latter needs help to live humanely!