Developing Countries: Budgetary Support

Debate between Baroness Northover and Lord Bishop of Bath and Wells

Wednesday 15th May 2013 Lords Chamber

[The Lord Bishop of Bath and Wells]

My Lords, it is Christian Aid week and research recently published by Christian Aid shows that in India companies with links to tax havens pay on average 30% less tax, indicating that they are shifting profits to secretive, low-tax jurisdictions, many of which have come under UK rule. Alongside allocation of direct budget support, how are Her Majesty’s Government encouraging poorer countries to have a more effective tax system to ensure that money is kept in the appropriate place?

[Baroness Northover]

The right reverend Prelate is quite right. He will have noted that my right honourable friends the Prime Minister and the Foreign Secretary have focused very much on this and are emphasising it at the G8. DfID has a number of programmes assisting in the development of the tax collection regimes in countries in which we work, because we recognise that it is extremely important that those within developing countries, whether they are international companies or prospering citizens, contribute to the country’s development.