The Prime Minister had a clear agenda in mind ahead of last week’s G8 Summit at Lough Erne, County Fermanagh: action to boost growth so that the UK succeeds in the global race. The vital drivers of which are the three Ts – trade, tax and transparency.
On trade, the Prime Minister launched negotiations on the biggest bilateral trade deal in history that would dismantle the taxes and tariffs which hinder trans-Atlantic trade. This deal represents an opportunity potentially worth £11 billion for the UK economy (£384 for every household), bringing two million new jobs and lower prices in the shops. Be in no doubt that this deal, in spite of France’s attempts to block progress without an exemption for its film industry, has the potential to have a greater impact for us than all the other trade deals on the table put together.
On tax, the Prime Minister agreed a Declaration that has the potential to rewrite international rules. It sets out simple, clear commitments. Tax authorities across the world should automatically share information so those who want to evade taxes will have nowhere left to hide. Companies should know who really owns them so people cannot avoid taxes by using complicated and fake structures. The Declaration also makes clear that all this action has to help developing countries too, by sharing tax information and building their capability to collect taxes.
On transparency, the Prime Minister has commissioned a new international mechanism through the Organisation for Economic Co-operation & Development (OECD) that will identify where multinational companies are earning their profits and paying their taxes so that those who are not paying their fair share can be tracked and exposed. This new international tax tool will ensure proper tax payment and proper tax justice.
It would be remise not to mention a fourth T discussed at the Summit – terrorism. The British Government has agreed new ways of stepping up the fight against terrorism and extremism, including more support for the government and people in Libya. Importantly, a declaration has also been signed to end the payment of ransoms for kidnap by terrorists.
People often question whether these Summits really achieve anything but in this case it is clear that Lough Erne has truly delivered on all these issues.
My hope now is that the G8 leaders show resolve in seeing through the agreements they reached and deliver prosperity and security for our countries, and the world.
Henry Smith MP