Rishi Sunak is facing growing pressure to support US proposals for a global minimum rate of corporation tax in the run-up to the UK hosting a pivotal meeting between G7 leaders in Cornwall next month.
Labour is expected to trigger a Commons vote on Monday designed to force the UK government to back the plan put forward by the US president, Joe Biden, which is being negotiated between more than 130 nations with the hope of securing an agreement this autumn.
Under the proposals, multinational corporations would be prevented from shifting profits across borders to exploit the most attractive low-tax locations, thereby allowing some big tech companies and other firms to avoid British tax and undercut British businesses. It would also set a minimum global corporation tax rate.
The Biden administration initially proposed a rate of 21% but last week it appeared to revise this, saying it should be “at least” 15%, although adding that this would be a…