London Daily

Focus on the big picture.
Tuesday, Oct 06, 2026

Sunak urged to back Biden corporate tax plan ‘worth £13.5bn a year’

Sunak urged to back Biden corporate tax plan ‘worth £13.5bn a year’

Campaigners say US global blueprint would help raise billions from multinationals and tech giants

Rishi Sunak has been urged to throw his full weight behind US proposals for a global minimum corporate tax rate after analysis showed it would bring in an extra £13.5bn a year for the public purse.

The campaign group Tax Justice UK said the Biden administration plan would help raise billions of pounds a year for the UK exchequer by hitting multinationals and US tech companies operating in the country with higher tax bills, including firms such as Amazon, Apple, Google owner Alphabet and Facebook.

Under the US blueprint, the world’s 100 most profitable multinationals would be forced to pay taxes to national governments based on the sales they generate in each country, irrespective of where they are based. It would also establish a global minimum tax rate to help bring an end to profit-shifting by multinationals and discourage countries from undercutting each other on tax rates. Washington has suggested a rate of 21%.

Finance ministers from across Europe – including from Germany, France and the Netherlands – have welcomed the US intervention as a signal that significant global progress can be made on tackling tax avoidance by big companies and digital firms.

However, tax campaigners said the UK government had been silent on the US plans, and urged the chancellor to give his full backing to Washington. The Labour shadow chancellor, Anneliese Dodds, also said Britain needed to play a leading role.

“Now that President Biden has moved the debate on, it’s important that our government moves to play its part,” she said.

Paul Monaghan, chief executive of the Fair Tax Mark campaign group, said other big European countries and the International Monetary Fund had responded publicly to the plan. “But we’ve heard nothing from Boris Johnson or Rishi Sunak in the UK as yet,” he said.

“The world has a once in a generation opportunity to embed tax justice and eradicate profit-shifting. It’s vital the UK steps up to the plate and publicly backs what the US and other progressives are trying to do.”

It is understood the UK Treasury recognises the need for an agreement on a global minimum tax rate as part of negotiations taking place at the Organisation for Economic Co-operation and Development (OECD), which is coordinating talks on tax reform between 135 nations.

However, sources said ministers wanted to make sure any solution was balanced and appropriately targeted, while also pointing to a track record of UK leadership on global tax reforms through the launch of a digital services tax last year. Designed as an interim measure before a global deal can be reached, the levy targets the British revenues of search engines, social media services and online marketplaces, and is similar to arrangements in France, Italy and Spain.

A Treasury spokesman said: “We welcome the US administration’s renewed commitment to reach a global solution this year.”

“Updating the international tax rules to ensure that digital businesses pay more tax in the UK, in line with their economic activities, remains a UK priority, and we will continue to work openly and constructively with international partners to develop a consensus-based solution.”

Negotiations at the OECD are expected to centre on the threshold for determining which companies are in scope, as well as the rate for a global minimum. Although aiming for a deal by mid-2021, significant hurdles remain given the lower corporate tax levied by some nations. EU members vary from as low as 9% in Hungary and 12.5% in Ireland to 32% in France and 31.5% in Portugal.

Tax Justice UK said establishing a minimum rate would bring substantial benefits, including more tax revenue for the exchequer, and addressing public anger at tax avoidance by major companies.

According to research for the group by international experts, setting the global rate at 15% would bring in an extra £8.2bn a year for the UK government, while a rate of 20% would generate £13.5bn.

Setting the minimum at 25%, the level at which Sunak will peg the UK’s domestic corporate tax rate at from 2023, up from a current level of 19%, would bring in an estimated £22.3bn, while a rate of 30% would raise £31.6bn annually.

Robert Palmer, executive director of Tax Justice UK, said: “The government should stand up and support these proposals. The UK and its tax haven network have long promoted a global race to the bottom on corporate taxes – this needs to end.”

Comments

Oh ya 5 year ago
Yup the bankrupt US government now wants to set tax rates in the entire world. The world needs to tell the US to get stuffed. Anything the US does around the world is for their gain not anyone else's

Newsletter

Related Articles

0:00
0:00
Close
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
EY Warns UK Fiscal Headroom Has Halved to £11 Billion Ahead of Autumn Budget
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
UK Schools Report Thousands of Child-on-Child Sexual Offences
High Court Overturns Ban Blocking Gaza Families From Reuniting With Relatives in UK
G7 Authorizes Emergency Fuel Release as UK Diesel Prices Hit £2 a Litre
France and Italy Draw 1-1 in Nations League Match
Pope Leo XIV and Prince Albert II of Monaco Meet in Metz
SNCF Expands Low-Cost Ouigo High-Speed Service Between Lyon and Bordeaux
Paris Expands Dedicated Cargo Bike Routes for Urban Deliveries
French Film Industry Pushes for Tighter Streaming Investment Rules
Marseille Court Hands Down Prison Terms in Public Procurement Corruption Case
LVMH and Kering Rely on US Demand as Chinese Luxury Spending Slows
Toulouse Aerospace Sector Launches €80 Million Modernization Fund
Javier Milei Courts French Investment in LNG and Lithium
Mistral AI Launches Sovereign Model for European Public Services
French Competition Authority Fines Retailers €40 Million Over Misleading Promotions
France Records Exceptional Electricity Exports as Nuclear Output Recovers
Dassault Aviation Expands Rafale Assembly Capacity at Mérignac
Sanofi Invests €1 Billion in New Biologics Production Hub Near Lyon
France Protests Germany’s Extension of Border Controls Into 2027
French Public-Sector and Transport Unions Threaten National Strike
France Deploys Riot Police After Violence in Lyon Suburbs
French Anti-Terrorism Prosecutors Investigate Radicalized Flydubai Co-Pilot
France’s Defense Budget Surpasses NATO’s 2% of GDP Target
French Government Faces No-Confidence Threat Over Budget
France and G7 Release 100 Million Barrels From Strategic Oil Reserves
France Convenes Emergency Defense Council Over Threats to Commercial Shipping
×