This Government has a good record on cutting business taxes. Corporation Tax has been cut from 28 pence in 2010 to 21 pence now, giving us one of the lowest rates in the developed world. Our Corporation Tax receipts have increased. We now need more action to tackle tax aviodance and ensure businesses pay their fair share.
Charlie: What estimate he has made of corporation tax receipts in each year since 2010; and if he will make a statement.
The Financial Secretary to the Treasury (Mr David Gauke): Her Majesty's Revenue and Customs publishes annual corporation tax statistics every August. They show that revenues from corporation tax, excluding the ring-fenced oil and gas regime, were £35 billion in 2010-11, £33 billion in 2011-12, £35 billion in 2012-13 and £36 billion in 2013-14. The Government have delivered major cuts to corporation tax, but increased growth and investment in the UK mean that revenues from the main regime were higher last year than in 2010.
Charlie: Is my hon. Friend aware that non-oil corporation tax receipts have risen 16% over the course of this Parliament so far, compared with a rise of just 8% over the entirety of the previous 13 years? Does that not show that if you cut the rate, you up the take? How will the diverted profits tax work?
The Financial Secretary to the Treasury (Mr David Gauke): It is right that we have reduced the corporation tax rate. Next year, it will give us the lowest rate in the G20. That is resulting in greater investment in the UK. It would certainly be a mistake to reverse that policy, as the Labour party intends. In terms of the diverted profits tax, I would point out that it will help to deal with aggressive tax avoidance. We will publish the draft legislation on that tomorrow, setting out the full details of how it will operate.
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