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.