G7 Global Tax Agreement

Baroness Morgan of Cotes Excerpts

Tuesday 8th June 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, perhaps I can clear up some ambiguity. The Government view the agreement that we have reached this week as completely good and in the interests not just of developed countries but of developing countries. It is a significant agreement. It is the first time that there has been G7 alignment on the core parameters of a two-pillar solution to this issue. It sets out the scope and effect of pillar 1, a minimum rate of corporation tax across the world and the application of that minimum rate on a country-by-country basis. So there is a level of detail but there is more work to do. As I have said, the next stage of that work is in July at the meeting of the G20.

[Baroness Morgan of Cotes (Con) [V]]

My noble friend has rightly said that the next stage is that G20 meeting. What assessment have Ministers made, and what assessment was made at the discussions last weekend, of the likelihood of countries outside the G7 agreeing to these plans without some changes having to be made?

[Baroness Penn (Con)]

My Lords, we recognise that this represents the basis of a potential agreement and compromise between different countries, but obviously it is important that those countries have their say and their voice in the process. The fact that this is the first time the G7 have been aligned behind a set of parameters provides important momentum but there is more work to do.