Christina Rees, MP for Neath, has shared her deep concern that the UK Government has denied support for a global corporation tax, in a vote on Monday. The Labour Party tabled an amendment to the Finance Bill, to secure support for a minimum global corporation tax rate of 15%.
Christina Rees voted in favour of the amendment, which was voted down by the Conservative UK Government 364 to 261. The initial proposal was a rate of 21%, but negotiations saw the rate reduced to 15% in an effort to gain global support. Despite this, the Tories still voted to reject this proposal. The UK is the only G7 country who has not backed President Biden’s plans.
The proposal would prevent multinational corporations from being able to cross borders to exploit tax havens, and guarantee that multinational corporations pay their fair share of tax.
Christina Rees, MP for Neath, said:
“The UK Tory Government would benefit from following the lead of the Welsh Labour Government who have supported local businesses throughout the pandemic. The UK Conservative Party had a once in a generation opportunity to repair global tax rules, and level the playing field for small businesses by ensuring fair taxation of multinational corporations. Instead, they chose to squander this and vote down Labour’s amendment on Monday.
“The Finance Bill has let down the people of Neath. In March, the Chancellor’s Budget announced cuts to Universal Credit which is set to take an estimated £500 out of household budgets by the end of September, whilst introducing a ‘super deduction’, allowing mega corporations, such as Amazon, to write off its entire remaining UK tax bill.
“Fortunately, we have a Welsh Labour Government to support us in Neath. Following the Chancellor’s Budget announcement in March, the Welsh Labour Government declared an additional £15.2 million in funding for our communities. The UK Government needs to reconsider its financial approach, to facilitate workers and businesses to succeed across the country.”