Question to the HM Treasury:

To ask the Chancellor of the Exchequer, for what reason he agreed to a global corporation tax rate of 15 per cent rather than 21 per cent as first proposed.

The Government is delighted that the G7 has come together to back the proposals developed by the OECD to reform the international tax framework.

Reaching final agreement on a two-pillar solution, which reallocates taxing rights and introduces a global minimum tax, would be a major multilateral achievement that introduces stability into the international tax landscape.

The Government recognises that there is more to do to reach final agreement with the G20 and 139 members of the OECD Inclusive Framework. Compromise will be necessary to reach that final agreement, including on the level of the global minimum tax rate; a key issue which will need to take into account the position of the wide array of views across the members of the Inclusive Framework. With that consideration in mind a common G7 position has been agreed that could represent a consensus position for the G20 and Inclusive Framework.