Support Fairer Taxes on Polluters and the Super Rich

Back in November 2023, the UN General Assembly Economic and Financial Committee approved a draft resolution calling for a legally binding UN Framework Convention on International Tax Co-operation. Then, in November 2024, it approved a further resolution adopting the terms of reference for this UN Framework Convention.

I believe it is crucial that the UK works to protect against base erosion and profit-shifting – where multinational corporations use tax avoidance strategies to shift profits to low- or no-tax locations. This means we must work with all stakeholders to ensure inclusive and effective international tax co-operation. I welcome that we has been actively engaging with negotiations over a UN Framework Convention on International Tax Co-operation.

At the same time, I believe that for a UN Tax Framework Convention to be able to make progress on international tax co-operation, it needs to have clear aims, avoid repeating work already taking place elsewhere and ensure that it seeks the broad support and participation of member states. It must also not undermine existing tax rules.

Unfortunately, I am concerned that, as the UK’s Ambassador highlighted during consideration of this issue at the UN in November, the resolution and the terms of reference for the UN Framework Convention do not provide sufficient reassurance on these issues.

I nevertheless welcome that the UK will continue to engage constructively on the UN Framework Convention in support of key principles for strengthening international tax co-operation. I can assure you that I will continue to follow developments on this issue, keeping in mind the concerns you highlight, as work on this continues at the UN.

On the issue of tax and multinationals more widely, I agree that we need to make sure global corporations pay their fair share of tax and that it is crucial we drive forward co-operation internationally to tackle aggressive tax planning by large multinationals and ensure a level playing field. That is why I welcome implementation of the OECD global minimum rate of corporate taxation.

I agree with you that we need to close the inequality gap, make taxes fairer, and ensure the wealthiest carry the heaviest burden. I think it is first important to flag that we have implemented some changes to ensure those that can most bear the burden do so, such as by closing non-dom loopholes, scrapping the private school VAT exemption, preventing the exploitation of farming tax loopholes, raising the living wage for working people alongside increasing national insurance contributions by larger businesses, and increasing the stamp charge land tax surcharge for second homes. I wanted to outline these decisions in a bit more detail to explain how they are specifically designed to ensure that wealth is being distributed back within our economy.

The Autumn Budget announced an increase in the main capital gains tax rates to 18% and 24% to raise revenue while ensuring the UK tax system remains competitive. These changes will raise £8.9 billion over the next five years and will ensure people earning income from selling financial assets will now contribute a greater share of tax towards improving our public services. As I mentioned, our Government has also abolished the non-dom regime, replacing it with a new internationally competitive residence-based regime, which came into effect in April 2025. This ends the use of offshore trusts to shelter assets from inheritance tax and will help ensure everyone who makes their home in the UK pays their taxes here.

In addition, the Government is raising an extra £2 billion from inheritance tax, including through restrictions on reliefs used by wealthy individuals. These include making the inheritance tax system fairer by applying inheritance tax to unspent pension pots, removing the opportunity for individuals to use pensions as a vehicle for inheritance tax planning, and by restricting the generosity of agricultural property relief and business property relief for the wealthiest estates.

I also support the new higher rate of stamp duty for additional dwellings, which has increased from 3% to 5%. This ensures that those looking to move home, or purchase their first property, have a greater advantage over second home buyers, landlords and businesses purchasing residential property.

During the Spring Statement, the Chancellor announced that our Government is now building on the Budget’s package to close the tax gap with measures to further cut down on tax evasion and raise over £1 billion in additional gross tax revenue per year by 2029-30. I welcome these steps, as unpaid tax deprives UK public services of vital funding and puts businesses who pay the right tax at a competitive disadvantage. The Government also plans to go further in the future to make it easier for taxpayers to pay the right tax through a modern and digital tax system.

At present, our Government has no plans to introduce a wealth tax. I believe that the best way to deliver more money for our public services is through economic growth, and such a tax could potentially deter vital capital investment into the UK, which would in turn decrease the vital funds available for hospitals, schools, and other essential public services that we all rely on. I’m not ruling it out as a concept but alongside my colleagues in the Government, think that finding the funding for such services is of utmost importance now and that was the manifesto we were elected on. It could also undermine the work that the Chancellor has done to restore fiscal responsibility and economic stability, which are critical to getting our economy growing and keeping taxes, inflation, and mortgages as low as possible. However, I really thank you for your suggestions and believe we should always keep the option for raising taxes on the wealthiest under review.