ActionAid Senior Advocacy Adviser, Charlie Matthews, commenting on George Osborne’s commitment to cutting Corporation Tax, said:
“In spite of public anger over corporations not paying their fair share of tax the Chancellor continues to push for lower corporation tax. The UK corporate tax rate was 28% in 2009 — today’s plans could see it fall below 15%. This is part of a wider trend which has seen corporate tax rates fall across the world.
“Poor countries are the big losers in this downward spiral as they are particularly dependent on corporation tax. Developing countries, already estimated to lose $200bn a year to corporate tax avoidance, are being pressured by cuts in the UK and elsewhere into offering ever-lower tax rates to big companies. Healthcare, schools and other key public services are left starved of resources as they are deprived of tax revenues, hitting women and children hardest.”