Oral Answers to Questions

Nick Smith Excerpts

Wednesday 8th January 2014 Commons Chamber

[The Prime Minister]

I am grateful to my right hon. Friend for what she says. There is a vibrant economy right across the Thames valley, including in Buckinghamshire, and that is going to be based on sticking to our long-term economic plan. What is particularly important for the companies that she has mentioned is to keep our rates of corporate tax low so that we attract businesses into the country and ensure that companies want to have their headquarters here. That is the right answer, rather than the answer of the Labour party, which is to put up corporation tax and to put a “Closed” sign over the British economy.

[Nick Smith (Blaenau Gwent) (Lab)]

Q9. A year ago, the Prime Minister said that he would make “damn sure” that foreign companies paid higher taxes, but in the Financial Times at the weekend, it was shown that companies such as Apple and eBay were now paying even less. Why is the Prime Minister’s tough talk not adding up to very much?

[The Prime Minister]

The hon. Gentleman is being a little unfair; I think we are making progress on this very difficult issue. At the G8, we raised the importance of having international rules on tax reporting and of more countries working together on that. Huge progress has been made, not least in the European Union, where countries such as Luxembourg and Austria, which have always held out against this exchange of information, are now taking part for the first time. The OECD work is also going ahead apace, and that is partly because Britain has put its full efforts behind this vital work.