That's the thing about capitalism

Christian Wolmar writes knowledgeably about the madcap race for railways in the nineteenth century; fortunes were won and lost, risks were high but rewards could be higher. Investors willingly put their money into these uncertain ventures in the full knowledge that it could either all be lost or they would become wealthy beyond desire. That’s the thing about capitalism. If you don’t want risk put your money into gilts or premium savings bonds. It’s a matter of choice.

Tax avoidance is also a matter of choice. It’s quite legal and proper – though not of course compulsory. Richard Branson, who is seeking taxpayer help in both Australia and the UK to keep Virgin Atlantic and Virgin Australia afloat, has been a tax resident in the British Virgin Islands now for many years, and has not paid tax in either the UK or Australia since 2006. He’s done well – though his £3.5bn fortune is largely in the share-value of his holdings rather than cash.

It’s quite legal to pare-down the assets of a struggling company. It’s quite legal to lease nearly all your aircraft and even to mortgage your LHR landing slots to bondholders. Nothing illegal there at all.

That’s the thing about capitalism. If those Virgin airlines go bust, the aircraft will still be there, the pilots, air and ground crews will still be there and passengers, even in reduced numbers, will still be there when we start flying again. The public won’t lose out. The brand was quite cool in the ’80s but then so were shoulder pads and Walkmans.

I can’t think of a single reason, therefore, why UK taxpayers should pay £500m to preserve Richard Branson’s wealth. Why should we? I don’t begrudge Branson his fortune, but won’t shed a tear if he loses it all. That’s the thing about capitalism.