The government is “gifting the biggest multinationals £131 million a week” by not signing up to a global minimum corporation tax proposed by US President Biden, Labour has said, a sum the opposition insists should be spent on public services.
Biden’s initial proposal of a 21 per cent tax rate could raise almost £15bn a year for the UK coffers if agreed at the forthcoming G7 summit starting on June 4 but rumours persist the agreement will be watered down to 15 per cent.
“This week is a chance for the government to back British business and help our public services rebuild out of the pandemic,” said shadow chancellor Rachel Reeves.
“Boris Johnson is gifting the biggest multinationals £131 million a week. Labour says let’s fund our NHS instead.
“Now that we’re out of the EU we have even more reason to show global leadership in cracking down on tax avoidance.”
This year’s Spring Budget set the UK corporation tax rate at 19 per cent, due to rise to 25 per cent in 2023 to help pay off the debts racked up through the coronavirus crisis.