Robert Largan Column: Leaders will be working together to address global challenges
This week will see a really important gathering of world leaders at the G7 summit in Cornwall.
Ahead of the meeting, the UK played a pivotal role in securing an historic agreement with G7 partners on global tax reform. Digital technology has evolved at a rapid pace, leaving behind a global tax system originally designed in the 1920s.
This agreement will bring the global tax system into the twenty-first century and make global companies pay their fair share. A minimum global corporation tax of 15 per cent in each country will achieve this and end decades of global tax avoidance.
There will also be new rules to ensure global companies pay their taxes in the countries where they operate. This applies to the largest multinationals with profit margins of at least 10 per cent, including the tech giants, with 20 per cent of any profit above the 10 per cent margin being reallocated and taxed in the countries where they operate.
In the Budget this year, the Chancellor announced that the UK will be going even further. Corporation tax for large businesses will increase from 19 per cent to 25 per cent from 1 April 2023, while small businesses will be protected.
This extra corporation tax revenue will help fund our vital public services as we start to build back better from the pandemic. Global companies benefit from significant parts of our public infrastructure when doing business. It is only right that they should pay their fair share so we can get more roads, railways, bridges, and broadband built.
Fairer corporation tax will also deliver a global recovery that works for everyone, including our high streets and local businesses. Global tax avoidance has given these large multinationals an unfair financial advantage, making it harder for town centres to compete against the digital marketplace. This step will help level the playing field and give a real boost for our independent small businesses and local high streets.
Along with the Government providing significant funding for both the regeneration of Buxton town centre and the restoration of Glossop Town Hall, there are lots of reasons to be optimistic about the future of High Peak’s high streets.