Carolyn Harris, MP for Swansea East, condemns the UK Government’s decision to allow billions of pounds to leave the country
Carolyn Harris, MP for Swansea East, has condemned the UK Government’s rejection of a global minimum corporation tax. This proposed new international minimum would have ensured that multinational corporations could not dodge their duty in paying tax in the UK.
Labour tabled an amendment to the Finance Bill on Monday, to encourage the Government to support the proposals. Carolyn Harris, voted in favour of the amendment, which was voted down by Conservative MPs. The amendment would have guaranteed that large multinational companies pay their fair share of tax and reduce the cases of UK property being used for money laundering.
Tax Justice UK suggests that a global minimum corporation tax would generate billions a year, but the Conservative Party have opted to protect multinational firms and online tech giants over small British businesses. The UK economy needs a significant injection of funding to recover from the Covid-19 pandemic, but the Conservative Government has not made this a priority thus far.
Carolyn Harris, MP for Swansea East, said:
“It is appalling that the Tories are blocking a move that would protect British businesses. The UK is hosting the G7 meeting in Cornwall in June and should be taking the lead in supporting the proposals and pushing them to be as ambitious as possible. Instead, our UK Government decides to sidestep the issue and block its adoption in the UK.
“The UK is the only country that has not supported the proposals for a minimum global corporation tax. If it is good enough for Canada, Germany, and France, why isn’t it good enough for us? It is wrong to assist multinational tech giants in evading their responsibilities, instead of providing the support small and medium businesses need to get ahead.
“The UK Government’s Finance Bill offered nothing to the people of Swansea East. The Chancellor chose to squeeze family finances by freezing personal allowances and introduced a ‘super deduction’ to allow multinationals, like Amazon, to write-off their tax obligations. We need a government in Westminster that acts in the national interest, not in self-interest.”