Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Thinktank urges UK government to back Biden’s global tax plan

Thinktank urges UK government to back Biden’s global tax plan

Proposal for 21% minimum corporate rate would generate additional £14.7bn for Britain, says IPPR
The UK would reap an extra £14.7bn annually by adopting Joe Biden’s proposal for a new global minimum corporation tax rate of 21%, according to a major thinktank.

The Institute for Public Policy Research (IPPR) Centre for Economic Justice has urged the government to embrace and push for the US president’s proposals at the forthcoming G7 summit, arguing that the global system would both be fairer and allow the UK to raise billions in vital revenue.

Biden has set out plans, based on long-gestating proposals by the Organisation for Economic Cooperation and Development, to force the world’s biggest multinationals to pay taxes to national governments based on the sales the companies generate in each country, and to establish a global minimum rate, to deter firms from shifting profits abroad and to reduce international undercutting on tax.

The US initially proposed a minimum global corporate tax rate of 21%, but has since signalled it could accept a 15% minimum.

Five of the other nations in the G7 have already indicated that they will back the proposals, but the UK has yet to do so – despite the chancellor having set out plans in this year’s budget to raise the UK’s corporation tax rate from 19% to 25% by 2023.

The IPPR argues that the UK, while hosting the G7 meeting in Cornwall this month, could take an opportunity for global leadership by backing a new global minimum rate of 21%, and help define a new consensus on fair and transparent taxation and investment, to aid a post-pandemic recovery.

It calculates that a global minimum of 21% corporation tax would generate increased UK tax receipts of £14.7bn, sufficient to fund the rebuilding of the NHS and care system (which the IPPR recently costed at £12bn). The alternative proposal for a 15% rate would only raise approximately half as much – about £7.9bn – and would retain “the race to the bottom on tax”, it says.

While opponents have argued that the minimum rate would undermine national sovereignty, the IPPR argues that the UK’s sovereignty is more affected by companies that are able to avoid taxation by shifting their profits to offshore havens. The Biden plan includes proposals to ensure firms cannot move profits to a country with a lower tax rate.

Companies that pay full taxes in the UK would not face higher bills either, given the new UK corporation tax rate. Instead, the IPPR says, it would prevent multinational firms from offshoring their profits to tax havens, in an unfair advantage over companies operating solely in the UK.

George Dibb, the head of the IPPR Centre for Economic Justice, said the UK government, as hosts of the G7 meeting, could shape the global economic consensus, but warned: “The window of opportunity may be narrow. Failure to reach consensus has held these negotiations up for years, until the new US administration kickstarted the process again. The UK should not miss the opportunity to seize global leadership on the issue.”

Carsten Jung, a senior economist at the IPPR, said: “For years, big businesses all around the world have avoided taxes, to the tune of $500bn per year, at the expense of all those domestic businesses that do pay their fair taxes. Fixing this will restore the level playing field for all UK businesses, and it will address one of the big economic injustices of our time.”

A Treasury spokesperson said that the government could back minimum tax rates, but as part of the proposed package under discussion at the OECD. “Reaching an international agreement on how large digital companies are taxed has been a priority for the chancellor since he took office.

“Our consistent position has been that it matters where tax is paid and any agreement must ensure digital businesses pay tax in the UK that reflects their economic activities.

“We welcome the US’s renewed commitment to tackling the issue and agree that minimum taxes might help to ensure businesses pay tax – as long as they are part of that package approach.”

G7 finance ministers are due to meet in London this week. According to Reuters, a draft communique shows they will pledge in July to reach an “ambitious” deal on a minimum global corporate tax.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×