Sunday 23 May 2021 / 10:30 PM Economy / Rachel Reeves

Labour to force vote on global minimum rate of corporation tax

Labour will tomorrow [Monday] trigger a Commons vote to force the Government to back the global minimum rate of corporation tax being proposed by President Biden at the upcoming G7 summit.

Britain is now the only country to not back the plan, with Germany, France, Canada, Italy and Japan backing Biden’s proposal.

Labour has tabled an amendment to the Finance Bill to force the Government to back the proposal.

The Shadow Chancellor of the Exchequer Rachel Reeves MP, has marked the pact as a once in a generation opportunity to stop huge multinationals avoiding British tax and undercutting British businesses, as well as arresting the global race to the bottom on corporate taxation.

And Labour have pointed to how tech giants and large multinationals have avoided paying billions of pounds in tax every year that could be invested in British public services and industry.

Tax Justice UK estimate a 21% global minimum rate, initially proposed by President Biden, would bring in about £13.5 billion a year in extra tax benefitting Britain.

 

Rachel Reeves MP, Labour’s Shadow Chancellor of the Exchequer, said:

“The Conservatives have a choice: they can join Labour in tackling large-scale tax avoidance or they can allow billions of pounds to leave Britain.

“This global pact will bring in extra tax benefitting Britain, while stopping huge multinationals and online giants from undercutting our businesses.

“By making sure they pay their fair share in Britain, we can level the playing field for our brilliant businesses, and build an economic recovery with thriving industries, strong public services and good, secure jobs for all.”