Autumn Statement

Baroness Hodge of Barking Excerpts

Wednesday 3rd December 2014 Commons Chamber

[Mr Osborne]

My hon. Friend is absolutely right. It is not enough just to do better than our neighbours, because of course they have their own problems and are stagnating. If one looks at all the various indexes of global tax competitiveness and global innovation, one sees that the UK is climbing up the ranks. We in the Treasury certainly seek to mark ourselves against the most competitive economies in the world, not just those on the continent of Europe. The steps I have outlined today, which probably will not make it on to the front pages of the newspapers, such as the increase in the small business research and development tax credit, the large company tax credit and changes to entrepreneurs’ relief and its relationship with the enterprise investment scheme, are all designed to support research and development and entrepreneurial business in this country.

[Margaret Hodge (Barking) (Lab)]

I sincerely welcome the Chancellor’s announcement of the new measures to crack down on tax avoidance, particularly by challenging the mismatch between the form of a company’s structure and the substance of its activities, which is a key recommendation from the Public Accounts Committee. This week, Starbucks announced that it will pay no corporation tax in the UK for the next three years. Can he tell the House when the measures that he has announced will be implemented and how they will prevent Starbucks from sticking two fingers up to the British people?

[Mr Osborne]

Of course, the legislation needs to pass through the House of Commons before the tax can be levied, so the diverted profits taxes are from April next year, and the hybrids taxes are from a little later, in 2017. It is complex tax legislation, but we aim to get it through. I suspect that, in order to get it through before the general election—the right hon. Lady might be helpful in this—we might need the co-operation of the Opposition in passing those clauses in the Finance Bill.