Lawsons calls to mandate Fair Tax accreditation

Builders merchant Lawsons Group has called on the government to introduce Fair Tax Mark accreditation as a requirement for all companies bidding on public sector construction and housebuilding contracts.

The call comes as the £180m-turnover business secures reaccreditation with the Fair Tax Mark, an independent certification recognising organisations committed to transparent and responsible UK tax practices.

Fair Tax Foundation research found that companies linked to tax havens secured 17.5% of the value of public contracts awarded between 2014 and 2019, equivalent to £37.5 billion over the period. Independent UK tax-paying businesses compete directly against larger rivals operating under more complex ownership and tax structures, despite contracts ultimately being funded by UK taxpayers.

With accredited businesses collectively contributing more than £4.1bn annually in corporate tax worldwide, and the UK losing an estimated £14bn annually to profit shifting, mandating Fair Tax Mark accreditation in public procurement would provide a clear benchmark for responsible tax conduct.

Chris Harrison, group finance director at Lawsons, said: “Independent businesses that reinvest locally, employ locally and pay full UK tax should never be commercially disadvantaged in public procurement. If a company is benefiting from taxpayer-funded construction projects, there is a strong case for demonstrating transparent and responsible UK tax practices. Public procurement of construction materials has enormous power to shape the market. It should only ever support businesses contributing directly back into the UK economy and supply chain.”