HM TREASURY News
Release (PN/42/04/08) issued by The Government News Network on 29
April 2008
Chancellor
announces new business-government forum on tax British businesses
and the Government will form a new working group to look at the
long-term challenges facing the UK tax system and ensure
competitiveness remains at the heart of any future reforms, the
Chancellor of the Exchequer, Alistair Darling announced today.
In his speech to a Chatham House conference on "New
Financial Frontiers" he set out plans for a new working
group, to be chaired by Financial Secretary Jane Kennedy with
business representatives.
The group will discuss ways in which the tax system can provide
the long-term certainty that multinational companies need in the
face of increased competitiveness and other global challenges
facing both business and government.
In his speech the Chancellor said:
"We need to anticipate a growing problem for all governments
- how to protect revenues in an increasingly global market place
for goods and services while promoting the competitiveness of our
businesses so that they can take advantage of open markets.
"Tax is one element of the strong business environment
which makes the UK competitive at a global level. The UK
corporation tax rate is one of the lowest in the G7.
"I am determined that we do what is necessary to remain one
of the world's best places to do business - and critically to
ensure that we maintain our strong and resilient economy and our
position as the world's leading financial centre.
"I am therefore bringing together a group with industry
representatives to discuss ways in which the tax system can
provide the long-term certainty multinational companies need,
considering the competitiveness and other challenges facing both
businesses and government."
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3. The Financial Secretary to the Treasury, the Rt Hon Jane
Kennedy MP, will chair the working group on business taxation and
the challenges of globalisation.
4. Its membership will be by invitation, and consist of senior
representatives of multinational companies, with up to ten members
to be appointed, reflecting the diversity of the companies involved.
5. The current global economic uncertainty makes it even more
important to focus on long-term challenges ahead and has
reinforced how much the global economy is interconnected. The need
for engagement now is clear.
6. The focus on multinationals reflects both the importance of
these companies to the UK economy and the fact that many aspects
of global economic change most directly affect them.
7. There is already extensive engagement on the reform of foreign
profits and this group is not intended to substitute these
specific discussions. But it will provide a broader frame of
reference for considering the UK's longer-term strategy on tax.
Draft terms of reference and membership for working group on
business taxation and the challenges of globalisation Aim:
* to discuss ways in which the business tax system can provide
the long-term certainty that multinational companies need,
considering competitiveness and other challenges facing both
businesses and government
Membership:
* to be chaired by the Financial Secretary to the Treasury, with
a senior HMT official as a deputy;
* supported by HMT officials and advisers as appropriate; and
* membership of the group to be no more than ten senior
representatives of multinational companies, with the aim of
providing a diverse representation.
Meetings and agendas:
* the subjects for discussion will be agreed by the group to
reflect both areas where business input would be particularly
valuable in developing policy responses. It will not substitute
for existing consultation arrangements on specific policy areas;
* the work of the group will be supported by Treasury officials,
who will supply papers;
* the timing of meetings will be agreed by the group on an
ongoing basis.