As someone who has lived in the city since your birth, Kojo Furoa has been an ever-present fixture of community life. Lots of children have played sports at the youth athletics stadium which was largely funded by corporate sponsorship. A wide range of charities and non-governmental organizations are known to rely heavily on both institutional and employee donations from Kojo Furoa.
Most local schools and colleges have developed long-term ties with the multinational, which regularly welcomes class visits and offers scholarship and apprenticeship opportunities that are highly sought after. As an elected councilor, you have become acutely aware of the societal role of the corporation. Over the years, Kojo Furoa’s taxes have become an important component of the council’s budgetary planning via business rates.
The prospect of losing this tax revenue, let alone the loss of high-quality jobs that offshoring would entail, is very worrying for all involved in local government. Both the local council and the national government have consistently sought to foster mutually beneficial relations with the corporation.
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For example, Kojo Furoa was rewarded with tax relief when they enlarged their base of operations five years ago. In order to facilitate the growth of Kojo Furoa’s operations, the local council funded various infrastructure projects, re-tarmacking two roads and upgrading sewage networks. Planning permission has invariably been hastily granted to Kojo Furoa’s requests. On the whole, there is therefore plenty of mutual respect and beneficence.
It has been widely reported in the local press that Kojo Furoa’s UK operations have been steadily declining in profitability for several years now. Due to the size of the employer, the council has been fearful of redundancies for some time. As the council’s representative for the negotiations, you are responsible for agreeing on future business rates.
You have been authorized to offer tax reductions in order to enable the corporation to respond to the increasing international competition. However, the council is not willing to cut tax revenues completely, and even modest reductions will surely have negative implications for other council services. Nevertheless, in order to guarantee that Cardown’s primary employer remains, tax concessions may need to be made.
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