The first amendment aims to improve transparency around international corporations’ tax affairs. If it passes, the amendment will give the government the power to make large global companies publish ‘headline’ details of where they make their profits and pay their taxes.
The second amendment proposes the reintroduction of ‘distributional analysis’ to government budgets, which will show the impact of budget measures on different income groups. This analysis was scrapped last year alongside George Osborne’s controversial plan to cut tax credits, which it is believed would disproportionately affect lower income groups.
“I am proud to support these two amendments which could help to tackle two great problems of time: tax avoidance and inequality.
“I owe it to my constituents to get accurate information on how government changes will affect them, and to make sure global companies pay their fair share of tax, just like businesses and families in Teesside have to. These amendments will help do both those things and that’s why I am supporting them.
“Regrettably, Labour’s leadership and organisation on these important issues has come from the backbenches. I hope the outcome of our leadership election will provide us with a new leadership that doesn’t have to rely on others to take on the Tories.
“So far Theresa May has talked the talk about corporate responsibility and helping the poor – we’ll see on Monday whether she’ll walk the walk by backing these amendments.”
The Finance Bill, and these amendments will be debated and voted on in the House of Commons on Monday (5 September) and Tuesday (6 September).