Labour has been urging the government to back a global minimum corporation tax which was proposed by President Biden ahead of the G7 taking place in the UK this month. This would stop tax avoidance by large multinationals and online giants who shift their profits overseas, undercutting British businesses who pay their fair share. Bringing this loophole to an end will bring in billions in extra tax which can be spent on public services whose finances have suffered after more than a decade of Tory austerity.
On 5th June G7 finance Ministers met and agreed in principle a global minimum corporation tax of at least 15%. While I welcome this progress, I am disappointed that the UK government spent time before the summit watering down the chances of achieving a 21% rate as initially proposed by President Biden.