Shabana Mahmood, MP for Birmingham Ladywood, shares disappointment that the Government has blocked measures that would keep billions of pounds in the UK
Shabana Mahmood, MP for Birmingham Ladywood, has shared her disappointment over the Government’s failure to support a global minimum rate of corporation tax. The proposals would introduce a minimum global corporation tax rate of at least 15% therefore protecting the UK economy from billions of pounds leaving to areas of lower corporation tax.
On Monday, Labour tabled an amendment, challenging the Conservative Government to support the proposals. The Conservative Party made a pivotal decision, rejecting the proposals, which would prevent Britain from losing billions of pounds a year according to Tax Justice UK. The proposals have collected support from a plethora of countries, and the British Government is the only G7 country not to endorse the proposals.
The amendment that the Tories rejected, would have protected British businesses from being undercut by large firms and safeguarded the UK economy from losing billions of pounds in the process.
Shabana Mahmood, MP for Birmingham Ladywood, said:
“The UK is the only G7 country that has not supported the proposals for a minimum global corporation tax. The Government should be in support of a move that will reduce levels of tax avoidance and evasion, but instead they decided to turn their backs on the small and medium size businesses who are being undercut by globalised corporations who sidestep their tax responsibilities.
“It is vital that we support British businesses as our country emerges from the worst economic crisis of any major economy, and this means implementing a global minimum corporation tax.
“The Conservative Party’s Finance Bill and Budget have failed to deliver a long-term plan for economic recovery for Birmingham Ladywood. They have offered nothing to help people back into work and suggested no action to help businesses struggling due to the Covid-19 pandemic. They must reconsider their actions and back Labour’s call for a global minimum corporation tax.”