Karin Smyth, MP for Bristol South, criticises the Government’s decision allow billions to leave the country in unpaid tax
Karin Smyth, MP for Bristol South, has criticised the Government’s decision not to back a global minimum corporation tax on Monday. The proposed minimum corporation tax rate of 15% would have applied across the world. This multilateral agreement is intended to reduce tax avoidance by huge corporations.
Labour tabled an amendment to the Finance Bill on Monday, urging the Government to support the US proposals. Karin Smyth, voted in favour of the amendment, but the entire Conservative Party voted to reject it. The UK is now the only G7 country not to back a global minimum corporation tax.
The proposals would introduce a minimum global corporation tax rate starting at 15%, and analysis by Tax Justice UK suggests that a global minimum corporation tax would generate billions a year. This could be used to inject funding into the NHS and support vital public services.
Karin Smyth, MP for Bristol South, said:
“It is deeply disappointing that the UK is the only G7 country who has failed to support the proposals for a global corporation tax, a move that would protect British businesses and ensure billions remain in the UK economy.
“It is more important than ever that the Government prioritises job creation and economic growth. Yet the Government has failed to deliver a financial plan to help people in Bristol South back into work or to help local businesses that are struggling, and now they have rejected an amendment which could help the UK to tackle the economic challenges left in the wake of the pandemic.
“The Government’s Finance Bill has failed the people of Bristol South. It has no plan to deal with the ongoing costs from the Covid-19 pandemic and has ensured that public services are in desperate need of funding. The Chancellor’s Budget revealed that NHS England core resource spending would be reduced from £147.7 million to £139.1 million in the next year. Yet he refuses to back a plan that would secure £13.5bn a year for the Treasury.”