Chris Elmore, MP for Ogmore, has shared his disappointment that the UK Government has blocked proposals for a global corporation tax. This would have seen the implementation of a minimum global corporation tax rate starting at 15%.
Labour tabled an amendment to the Finance Bill on Monday, which the UK Government opposed, meaning that the UK is the only G7 country who has not supported Biden’s proposals. Chris Elmore was amongst the MPs who voted for the amendment, but no Conservative MPs voted in favour.
The proposals would prevent multinational corporations from being able to cross borders to take advantage of lower tax rates in other countries, ensuring they pay their fair share of tax. Tax Justice UK estimates that a 20% global minimum tax rate would secure £13.5 billion more a year for the UK economy.
Chris Elmore, MP for Ogmore, said:
“Covid-19 has hit small businesses hard. This was an opportunity for the Government to level the playing field for small businesses who are being undercut by large firms exploiting tax loopholes.
“The UK Tory Government’s Finance Bill has failed to provide economic security for people across Ogmore. They have favoured multinational giants over small businesses and families. We saw this in March, when the Chancellor’s Budget announced cuts to Universal Credit, whilst introducing a ‘super deduction’ to allow multinational corporations to write off their tax liabilities.
“The UK Government should be taking a lead in supporting the plan for a global corporation tax, but as usual it is prioritising its own interests. We need a fairer tax system that stops billions of pounds being syphoned away by multinational corporations.”