UK Uncut At Starbucks – On Saturday 8th December 2012 UK Uncut protested at over 45 Starbucks coffee shops across the UK against their failure to pay their proper share of tax.
They were also in protest against the government’s continuing refusal to close loopholes and cut down on tax avoidance and the harsh impact of government cuts on women.
UK Uncut briefly transformed the branches of Starbucks into women’s refuges, crèches and homeless shelters, which elsewhere in many places are having to close because of the cuts which would not be necessary if companies like Starbucks paid tax properly on their UK earnings.
I photographed the protests at three Starbucks branches, beginning in the West End at Conduit Street. Here a quarter of an hour before the protest was due to start there were already police, press and a few demonstrators outside.
A Starbucks employee was standing by the door and refusing entry to those he thought likely to be protesters, but I was not stopped and joined the queue. There were others in front of me who I thought were probabably UK Uncut supporters as well as some already seated and drinking coffee.
The queue moved slowly towards the counter and by noon when the protest was about to start I was in danger of being served, but was saved from bad coffee as one of the protesters got up and started the protest.
She read a lengthy document about Starbucks’ failure to pay tax, and how the amounts that companies including them were avoiding paying were around five times the total of the cuts in services so far made by the coalition government. Then she announced that they were setting up a crèche inside this branch to compensate for all those and other family services that the government had closed.
Starbucks staff locked the door and the protest continued with more speeches and chanting calling for Starbucks to pay up. It was a family-friendly protest with some babies and young children in families taking part and there was only any argument when staff stopped a couple of the protesters from putting their banner up in the window.
Around ten minutes later a police officer arrived and wrongly accused the protesters of behaving in an intimidatory manner towards the staff and customers. They had behaved politely and there was clearly no intimidation, and they had not even been asked to leave by the store manager.
Despite this, the police told them this very well ordered protest was a disorderly protest and that they would be arrested unless they left, though he failed to say under what law.
Customers who were not protesting – though some had been interested by the protest and asking to know more about Starbucks failure to pay taxes, along with some of the protesters and some of the press, myself included, then left the store, walking through a large and noisy protest by those who had not managed to gain entry earlier.
The protest inside continued, and in the next five minutes or so that I was outside there appeared to be no arrests. But I decided then to take the short walk to the Vigo Street Starbucks to see what was happening there.
The Vigo Street protest had also begun at noon and although I was unable to go inside I was able to photograph the ‘Women’s refuge’ that had been set up through the large glass windows, as well as the large crowd protesting outside. A few minutes later, having been inside for over half an hour the protesters inside walk out to take part in the rally outside.
Here we were told some of the tricks that Starbucks uses to avoid tax. One is to use a Starbucks company in a tax haven to lend them money at 4% above the LIBOR rate to fund their UK operations. This excess interest reduces the profit of the UK company but transfers large amounts to them in the tax haven. They also buy their coffee beans at inflated prices from a subsidiary in Switzerland which reduces the tax they pay from 24% to 5%, and pay 6% of their sales as a royalty to their Dutch company which has a secret low rate tax deal with the government there.
Tricks like these used for corporate tax avoidance are caluclated to cost the UK £70 billion in lost tax revenue – far more than the £15 billion of benefit cuts.
Later in the day I went to the Euston Road branch of Starbucks where the Labour Representation Committee together with UK Uncut briefly occupied the store.
The LRC at the 2010 Labour conference had put forward a motion calling on the party to mount a campaign to highlight tax avoidance which had been passed overwhelmingly but so far the party had failed to take action. It now seems unlikely that should we get a Starmer government any real moves will be made in this area.
The LRC had called for the action to take place at 2pm, but when they had failed to show up fifteen minutes later the UK Uncut supporters went in and began to occupy. Some people from the LRC arrived shortly after but by then Starbucks staff had locked the doors and they were unable to enter.
Police arrived and came and talked politely with staff and protesters who agreed they would leave and continue the protest outside when they were requested to do so – which shortly after they did.
More had now turned up for the protest which continued for around half an hour outside the store.
More on My London Diary:
UK Uncut Visits Starbucks
Starbucks Euston Road – LRC