16/06/23

UK: Boris allies target Sunak's plans for a global tax rate as first act of revenge on PM

As published on: express.co.uk, Friday 16 June, 2023.

Priti Patel is leading a major Tory rebellion to halt Rishi Sunak's bid to sign the UK up to a minimum corporation tax rate.

Rishi Sunak is facing a major rebellion as allies of Boris Johnson focus on wrecking his key policies in the wake of what they believe was collusion over the Privileges Committee report.

Former Home Secretary Priti Patel is leading a rebellion on Mr Sunak's plans to sign Britain up to a global tax rate.

The proposal, which he negotiated with the G7 when he was Chancellor in 2021, would mean that the UK could not set a corporation tax rate below 15 percent.

Mr Sunak now plans to plough ahead with the proposal, even though the EU is allowing Ireland to continue with just 12.5 percent and the USA is refusing to sign up to the scheme.

Critics have questioned why Britain would leave the EU to become more competitive and then agree to international rules which prevent tax competitiveness.

Ms Patel has already managed to get 26 other Tory MPs to sign up to back her amendment opposing the plan to the financial measures vote on Tuesday.

It is understood that by next week, she is optimistic of getting more than 30 MPs to back her.

Many believe if she succeeds, Mr Sunak will pull the motion rather than face a serious rebellion as he has done on other contentious issues such as the Animal Welfare Bill, housing quotas and onshore wind.

One former cabinet minister told Express.couk: "Every time he is faced with a serious rebellion, the PM backs down.

"It's one reason that so little is getting done at the moment."

Supporters of Ms Patel's amendment are furious that Mr Sunak's plans will prevent Britain from becoming a low tax place to encourage growth and bring in investment.

They are already angry that he hiked Corpoaration tax from 19p to 25p in the pound in Jeremy Hunt's last Budget.

One supporter of the amendment said: "There is no way we should be signing up to this anti-competitive nonsense especially when our competitors are not."

Another Tory MP added: "We should be cutting taxes not finding new ways to keep them high."

Others though have made it clear that the treatment of Boris Johnson and the belief that Downing Street colluded with the Privileges Committee is also at the heart of this and other future rebellions.

One senior MP noted: "If they are going to act like this then Rishi and Downing Street are going to find that they are going to be facing rebellion after rebellion.

"Life is going to get very unpleasant for them."

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Global Tax Rate PM UK