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Parliament Committee backs call for Government to abandon plans to rob poor countries of tax revenue

23 August 2012

The House of Commons International Development Committee have joined the calls on the Government to abandon plans that could rob poor countries of up to £4 billion in lost tax revenues.

LCID has been campaigning with Labour MPs and the charities ActionAid and Christian Aid against Osborne’s proposed changes to tax rules affecting UK-owned companies operating abroad – which could make it easier for them to use tax havens and reduce their tax liability in developing countries.

The International Development Committee called on the government to review the changes and called on them to designate a DFID ministerial responsibility for the development impact of tax and fiscal policy.


Rachel Reeves, Owen Smith and Catherine McKinnell in Labour’s Treasury team, Shadow Development Secretary Ivan Lewis, have been leading the fight against these changes – along with Sheila Gilmore who has been trying to pass an amendment to the Finance Bill as it passes through committee stage.

Rachel Reeves MP, the Shadow Chief Secretary and LCID Honorary Co-President, said:

“It is astounding that given the rhetoric coming from the coalition on tax avoidance, that despite warm words from Liberal Democrats, we were voted down by coalition MPs on this issue. Labour has been pushing for over a year for proper studies into the impact of these changes.”

Ivan Lewis, Shadow Development Secretary, said:

“George Osborne’s determination to press ahead with these changes makes a mockery of the Tory-led government’s commitment to tackling tax avoidance.

“Giving aid to developing countries with one hand while removing tax revenue with the other allows UK-based multinational companies to shirk their responsibilities at the expense of the poorest people in the world.

“Once again the Tories are demonstrating whose side they are really on.”


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