Labour Plans Vote On Joe Biden's Global Corporation Tax Rate Plan

Rachel Reeves says it would “bring in extra tax benefitting Britain”.
NICHOLAS KAMM via Getty Images

Labour will trigger a Commons vote on Monday designed to force the government to back Joe Biden’s plan for a global minimum rate of corporation tax.

Rachel Reeves, the shadow chancellor, said the the global pact proposed by the US president would “bring in extra tax benefitting Britain”.

But the UK has not agreed to the plan, which is likely to be discussed at the G7 summit in Cornwall next month.

Biden initially proposed a minimum global rate of 21%. The US has now put forward a plan for a “floor” of 15%.

And has called for discussions to continue to “push that rate higher”.

Labour has tabled an amendment to the Finance Bill which backs the plan.

The government has insisted that it wants an international solution to the “tax challenges” posed by the rise of the tech giants and the digital economy.

But it has argued that reform should focus on making multinationals pay more tax in the countries where they make sales and operate.

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.”

Labour pointed out Germany, France, Canada, Italy and Japan have all expressed support for Biden’s proposal.

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