A decade of data: Why fair tax matters for business

Written by Penny Hogan, chief financial officer at Unity Trust Bank, headquartered in Birmingham

At Unity, we know that transparency and integrity are essential to enabling a fairer society – and this extends to responsible tax practices. As a bank focused on ethical business banking, we are a long-standing advocate of fair tax conduct, with a deep understanding of the critical contribution this makes to communities across the UK.

Organisations like the Fair Tax Foundation, where I serve as a non-executive director, play a vital role in fostering a culture of increased accountability, and this mirrors a clear public appetite for greater financial transparency.

The Fair Tax Foundation’s latest report, sponsored by Unity, draws on a decade of public attitudes research and shows that corporate tax conduct is closely linked to trust, reputation, and consumer confidence.

Compiling 10 years of polling data, ‘Strong and sustained: a decade of public support for responsible corporate tax conduct in the UK’, reveals that:

• 74 per cent of the UK public would rather work for a business that pays its fair share of tax
• 64 per cent would trust a business with the Fair Tax Mark more than one without
• 54 per cent would switch to an equivalent business or provider with the Fair Tax Mark

There is also strong backing for greater transparency around corporate income and tax reporting, by both large multinationals (74 per cent) and small micro-enterprises (76 per cent).

The report highlights that, over the past decade, close to three-quarters of the UK public have consistently said that they would rather work for, shop at, and trust a business that is a responsible tax payer – with public attitudes translating into public action.

Better for business

Beyond compliance, fair tax practice is increasingly perceived as a business’ ethical responsibility. This comes as the ethical consumer movement has more than doubled in the past ten years, surpassing £141bn in 2021.

As customers become more conscious about where they spend their money, a business’ ethical credentials have a growing influence on consumer behaviour. As shown in the report, an average 54 per cent of people over the past 10 years would actually switch to an equivalent business or provider that carries the Fair Tax Mark, with the figure peaking at 60 per cent in 2020.

This highlights how the Fair Tax Mark can add real business value. As well as resonating well with customers, it boosts employee pride, reassures investors, demonstrates a company’s credible ESG strategy, and shows that an organisation is properly managing tax-related risks.

At Unity, paying our fair share of tax is an extension of our mission and a guiding principle of business. We were the first UK bank to be awarded the Fair Tax Mark in 2014, and we have retained this important accreditation for 12 consecutive years – a commitment that I have been proud to spearhead in my position as CFO.

Community impact

This latest report reiterates the importance of corporation tax in the wider tax system – with Fair Tax Mark businesses alone contributing £4.1bn annually in corporate income tax worldwide – and why we must continue to advocate for fair and responsible financial conduct.

When businesses pay their fair share of tax, these funds go directly to the schools, hospitals, and services that are at the heart of every community – creating a societal safety net that is fundamental to ongoing social mobility, resilience, and equality.

As corporate finances continue to face greater scrutiny, choosing to open ethical business bank accounts, where customer deposits are used to lend to organisations that are creating a positive impact, can also help to demonstrate responsible corporate practice.

At Unity, we are focused on providing loans to organisations working at the frontline of communities – including housing associations, charities, and healthcare providers – meaning our customers know their money is being used to help deliver direct societal benefit.

Hitting the mark

With a decade of data signalling a strong public appetite for greater financial transparency, I hope that organisations clearly see the benefit of paying their fair share of tax. Unity Trust Bank’s ‘double bottom line’ strategy looks to maximise positive social impact alongside financial returns, and upholding our commitment to proper tax practice is a vital part of this.

Choosing the right partner for your day-to-day business banking needs ensures that profit and purpose can seamlessly go hand-in-hand.

Today, with fair tax being a key driver of customer loyalty, employee pride, and societal growth, trusted accreditations such as the Fair Tax Mark are showing their worth – going beyond compliance to provide the true ‘mark’ of a fair and responsible business.