News story: Chancellor pushes for international action on tax rules for the digital era
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Global tax rules do not reflect the digital age, Chancellor to warn world leaders
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Chancellor will also meet with the leaders of the Japanese business federation and Japan’s big banks to discuss future opportunities from the UK-Japan relationship
World leaders must follow the UK’s lead and work together to ensure global tax rules keep up with the times, the Chancellor will stress at a meeting of Finance Ministers from major economies around the world in Fukuoka, Japan (7 June).
The digital revolution has transformed how we do business, but the international corporate tax system is outdated, the Chancellor will say during the meeting of G20 Finance Ministers and Central Bank Governors. He will also outline the benefits brought by digitalisation to the UK economy and beyond, but warn that a plan needs to be agreed to tackle the way tech multi-nationals are taxed, because change is too slow.
Chancellor of the Exchequer, Philip Hammond said:
Britain’s future outside the EU depends on the strong partnerships we build with our friends and neighbours across the world.
In Japan, I will further strengthen our successful economic relationship by showcasing how we’re embracing the new economy and champion our world-class expertise in tackling the challenges posed by the digital revolution. I will also meet with my G20 counterparts to reaffirm the need for global reform of the international corporate tax framework, to ensure it is fit for the future.
The Chancellor set out details in last year’s Budget for a Digital Services Tax – a tax on the revenues of certain online business models. But he made clear then that an international agreement would be the best solution to ensure that digital platform businesses that generate substantial value in the UK pay their fair share of tax.
Alongside Japanese, Chinese, French, and American counterparts, the Chancellor will reaffirm the UK’s commitment to reaching an international agreement on reforms to the international corporate tax framework for digital businesses.
Building on a recent report from the Global Infrastructure Hub – a G20 initiative – which noted that the UK is a ‘pioneer of project delivery globally’, the Chancellor will also push for the adoption of a set of shared principles for global quality infrastructure investment. The G20 Principles for Quality Infrastructure Investment will support efforts to close the infrastructure financing gap and drive sustainable growth.
The Chancellor will also hold talks with Finance Ministers of some of the largest global economies, including for the first time India’s new Finance Minister Nirmala Sitharaman. They’ll discuss the challenges facing the global economy and cooperation post-Brexit.
Finally, in Tokyo the Chancellor is also set to meet with senior figures in Keidanren (the Japanese Business Federation) and the CEOs of some of Japan’s largest businesses and banks, including Masayoshi Son, Founder and CEO of Softbank. They’ll discuss how the UK will maintain and strengthen its future economic ties with Japan – the world’s third largest economy – long after Brexit.
Japan was the UK’s 4th largest trading partner outside of the EU in 2018. Total trade in goods and services (i.e. exports plus imports) between the UK and Japan was £29.5 billion by the end of Q4 2018, 8.5% more than 2017.
The International Trade Secretary is also attending G20 meetings in Japan this weekend to address global trade tensions and advance reform of the WTO, including on digital trade rules that are fit for the 21st century.
Further Information
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Keidanren is the largest and most influential Japanese business organisation, comprising 1,412 major companies, 109 industrial associations and 47 regional economic organisations.
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The UK used its Presidency of the G8 in 2013 to initiate the first substantial renovation of the international tax standards in almost a century. The ‘BEPS package’ initiated then is a series of concrete measures to help countries tackle businesses shifting their profits around to limit their tax bills.
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The Infrastructure and Projects Authority, the UK’s centre of expertise for the delivery of infrastructure and major projects, has provided support to over 60 governments on infrastructure planning and delivery, and is working to promote the G20 Principles for the Infrastructure Project Preparation Phase – a key element of quality infrastructure endorsed by the G20 in 2018.
Press release: Spotlight shone on disqualified shadow director flouting ban
Absolute Resource Management Limited was incorporated on 30 November 2007 and began trading in 2009 under the sole directorship of Carol Perry. The Bedford-based company provided IT consultancy services to businesses.
By August 2016, however, Absolute Resource Management was unable to pay its debts and appointed a liquidator to commence voluntary liquidation proceedings.
The liquidator’s report triggered an Insolvency Service investigation, which uncovered that Carol Perry’s younger brother, Keith Angus Perry (49), had been acting as a shadow director of Absolute Resource Management since 2010 – despite being disqualified from doing so.
Keith Perry’s original ban came into force in August 2010 for seven years following his conduct while director of Absolute Service Management (Beds) Limited. He caused that company not to maintain adequate accounting records or pay appropriate taxes.
Under his disqualification restrictions, Keith Perry should have applied to the courts for leave to act as a director of Absolute Resource Management Limited, but failed to do so.
Investigators also uncovered that Keith Perry repeated his earlier misconduct, causing Absolute Resource Management Limited not to pay its taxes in full between March 2013 and August 2016. The company eventually stopped trading owing the tax authority more than £220,000.
On 15 May 2019, the Secretary of State accepted a disqualification undertaking from Keith Angus Perry for 11 years, commencing on 5 June 2019.
His older sister, Carol Perry (51), previously signed a disqualification undertaking in July 2018 for four years after failing to ensure the company fulfilled its tax obligations.
The Perry siblings are disqualified from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.
Lawrence Zussman, Deputy Head of Insolvent Investigations for the Insolvency Service, said:
The liquidation of Absolute Resource Management shone a light on what had been going on in the shadows, revealing that Keith Perry had been flouting his ban.
This 11-year disqualification serves as a warning to other directors who think they can hoodwink the system that we will pursue enforcement action to stop unscrupulous behaviour.
Keith Angus Perry (49) is of Luton and his date of birth is January 1970.
Carol Georgina Perry (51) is of Luton and her date of birth is December 1967.
Absolute Resource Management Limited (Company number 06441727).
Absolute Service Management (Beds) Limited, formerly named Absolute Service Management Limited, was wound up on 27 April 2009 and placed in Compulsory Liquidation. (Company number 05043521).
A disqualification order has the effect that, without specific permission of a court, a person with a disqualification cannot:
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company’s property
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.
Persons subject to a disqualification order are bound by a range of other restrictions.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
You can also follow the Insolvency Service on:
News story: New chief medical officer appointed
![Professor Chris Whitty](https://assets.publishing.service.gov.uk/media/5cfa162de5274a5f164af01d/chris-whitty.png)
The appointment has been made with the support of the Prime Minister, and follows an external recruitment competition.
Professor Whitty is currently Chief Scientific Adviser for the Department of Health and Social Care.
He has overall responsibility for the department’s research and development, including the National Institute for Health Research (NIHR) and life science strategy.
He is also the Professor of Public and International Health at the London School of Hygiene and Tropical Medicine, a practising NHS Consultant Physician in acute medicine and infectious diseases at University College London Hospitals, and Gresham Professor of Physic.
He will replace Professor Dame Sally Davies, the current Chief Medical Officer, when she takes up a new role as master of Trinity College Cambridge in October 2019.
Professor Whitty will continue to lead the NIHR for the foreseeable future.
Professor Chris Whitty said:
It is a huge honour to be given the opportunity as Chief Medical Officer for England to be able to support colleagues in public health, the NHS and social care around the country to improve the health of the nation.
I look forward to working within DHSC and across Whitehall to support the government in leading the nation’s health and care.
Sir Chris Wormald, Permanent Secretary at DHSC, said:
I am delighted that Chris Whitty has been appointed as the Chief Medical Officer for England.
He is doing an excellent job as Chief Scientific Adviser and will bring to his new role a wealth of relevant experience from his previous roles in public health, most recently as Professor of Public and International Health at the London School of Hygiene and Tropical Medicine and as an NHS consultant.
I look forward to working with him in his new role.
Health and Social Care Secretary, Matt Hancock, said:
Professor Chris Whitty will make an excellent Chief Medical Officer, bringing his extensive clinical experience and a passion for keeping the nation healthy.
I can think of no better person to lead the fight against infectious diseases, public health threats, and lead the medical profession to continue keeping us as healthy as possible.
Last updated 14 June 2019 + show all updates
- Clarification made, that Professor Whitty will continue to lead the National Institute for Health Research (NIHR) for the foreseeable future.
- First published.
Press release: Green light for next stage of Leeds Flood Alleviation Scheme
The next stage of a major scheme to help protect Leeds from future flood risk has been given the green light at a meeting today (Thursday 6 June).
Members of the city plans panel have now supported a planning application put forward by Leeds City Council, working alongside the Environment Agency, so that work on phase 2 of the Leeds Flood Alleviation Scheme along the River Aire can get underway.
Phase two of the Leeds flood defence scheme, covering the Kirkstall Corridor will be delivered in two-steps, as Leeds City Council are taking a pragmatic approach to allow work to get underway as soon as possible. The approval is for the first of two steps which will, when combined, be a £112.1m investment in Phase 2 of the Leeds Flood Alleviation Scheme.
The first step starting this autumn, will use £65m funding already secured from the Government, alongside additional financial support from Leeds City Council and partners. This will reduce the risk of flooding along an 8km stretch of the River Aire from Leeds city centre through the A65 Kirkstall Road corridor and will provide an initial level of protection against the threat of flooding from the River Aire which equates to a 1 in 100 (1%) chance of flooding in any given year. This is the same standard that Phase 1 of the scheme currently provides to the city downstream of Leeds station.
Talks are continuing to secure the remainder of the funding to carry out the second step and complete the scheme in full which, pending further planning approval, would double the standard of protection offered by the whole Leeds Flood Alleviation Scheme.
Now that planning permission has been given, Leeds City Council can award the contract that will see the detailed designs for the first step of phase two drawn up this summer, followed by work starting in the autumn. The first step of Phase 2 will provide linear defences along the 8km stretch upstream of Leeds station and focuses on three key areas – Leeds Industrial Museum at Armley Mills, Kirkstall Abbey and Kirkstall Meadows.
- At Leeds Industrial Museum at Armley Mills, which suffered significant flood damage in 2015, the defence works include new protective walls, a new higher bridge to improve water flow and two new control structures on the goit which can close when the river levels become too high.
- A new structure will be built at Kirkstall Abbey in front of Kirkabbey Sluice Gates which will limit the amount of water during high river levels going down the goit channel. The structure will also be a walkway that could open up new views.
- The proposal at Kirkstall Meadows is to transform 2.4 hectares into a wetland habitat and also feature kingfisher banks, otter holts and wetland scrapes for fish. A new flood embankment will reduce flood risk to the adjacent railway line.
The first step also incorporates a flagship Natural Flood Management programme that will be delivered across the catchment upstream of Leeds alongside engineering works within the city. This programme, delivered by the Environment Agency on behalf of Leeds City Council, will involve working with partners and landowners to deliver a range of measures, such as the creation of new woodland, woody debris dams and wetland areas, which can slow the flow of rainwater into the river, helping to reduce the risk of flooding and mitigate the impacts of climate change. Additional planning approvals will be sought from the relevant authorities as the catchment wide programme develops.
Leader of Leeds City Council Councillor Judith Blake said:
“The planning support given today is fantastic news so that we can get on and start delivering the next phase of the Leeds Flood Alleviation Scheme to provide the protection from the threat of flooding and the reassurance our communities and businesses need and deserve.
“This two-step approach is a pragmatic way of doing what we can with the funding we have now, but we remain absolutely determined to get this scheme completed in full to offer the best possible level of protection we can for Leeds and surrounding areas.
“Working with the Environment Agency and partners we have taken an imaginative catchment wide approach, with a strong focus on using natural measures such as tree planting to do the job for us, so we look forward to seeing these works begin later in the year.”
Flood risk manager at the Environment Agency, Adrian Gill said:
“Our joint project team is delighted to have achieved this milestone of getting planning approval to progress the next stage of the Leeds Flood Alleviation Scheme. We can now begin work on the ground at pace, within the funds we have available.
“Our ambition is still to complete both steps of this second phase of the scheme. The first step will provide much better protection from the River Aire upstream of Leeds station through the Kirkstall area and out to Newlay.
“The natural flood management measures that will be delivered across the catchment upstream as part of the first step will not only help reduce flood risk but also restore and create new habitat, increase biodiversity resilience and improve water quality. This will contribute to delivering the Government’s 25 Year Environment Plan and realising the vision of the Northern Forest in the Aire catchment.
“We are looking forward to the next stage of delivery and being able to share the detailed design of the proposed scheme with the residents, businesses and wider community of west Leeds.”
Step two of the Phase 2 scheme will be the creation of a flood storage area near Calverley. Moveable weir technology also featured in phase one of the scheme in the city centre will be used to allow water to be stored and then be released slowly back into the river in a controlled way.
The second step will reduce the risk of flooding along the 20km stretch of the River Aire from the outer ring road to the west of the city, through the city centre and out past Stourton, providing an increased level of protection against the threat of flooding from the River Aire which equates to a 1 in 200 (0.5%) chance of flooding in any given year. When constructed, it will make the Leeds Flood Alleviation Scheme one of the largest flood defence schemes to be constructed in the country.
Work on this step will continue and includes:
- Investigations which are currently being carried out into the structure of the listed Apperley Bridge in Bradford to understand what alteration work is needed to reduce the impacts of flood risk. The bridge will be restored to retain its appearance and protection will be provided underneath to reduce erosion.
- Working with the landowners and seeking planning permission once more detailed design work has been completed.
- Securing the remainder of the funding required. A separate planning application has also been submitted to carry out landscape works benefit the environment and wildlife, and improve access to amenities. This will include two new bridges, improvements to footpaths and new woodland and natural areas. If approved, the works will be delivered as part of the first step of phase two of the scheme.
or follow us on Twitter @LeedsFAS. To sign up for our newsletters about the scheme email: lfas@leeds.gov.uk