Sunak pressed to back Biden’s global tax plan
Labour wants Rishi Sunak to sign up to new tax
Rishi Sunak is coming under pressure to back US Joe Biden’s call for a global minimum rate of corporation tax to stop big corporations seeking to exploit low-tax regimes.
Labour will demand a Commons vote on Monday to persuade the Chancellor to pledge Britain’s support for the tax in the run-up to next month’s G7 leaders meeting.
Britain is now the only country among the G7 not backing the plan and Labour has tabled an amendment to the Finance Bill to force the Government’s hand.
Shadow Chancellor Rachel Reeves 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.
Labour has 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 benefiting Britain.
Ms Reeves 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.”
A Conservative party source said: “The Labour party have been calling for a global minimum rate of tax, while at the same time voted against the rise in domestic corporation tax. It’s time the Labour party made up their mind about where they stand.”