Labour’s shadow chancellor John McDonnell has said the party has “aggressive” plans to make corporations such as Amazon, Google Starbucks and Vodafone pay their “fair share of taxes”.
In his first speech as shadow chancellor at the Labour Conference taking place in Brighton this week, McDonnell outlined plans to cut the deficit by targeting corporate tax avoidance and increasing taxes on the rich.
According to the Guardian, McDonnell won an "ecstatic reception" when he said Labour’s plan to “balance the books will be aggressive”.
He also said Labour's plan would be to end economic discourse in the UK by cutting the deficit without austerity.
He said: “We are embarking on the immense task of changing the economic discourse in this country. We are throwing off that ridiculous charge that we are deficit deniers.
“We are saying, tackling the deficit is important but we are rejecting austerity as the means to do it. We are setting out an alternative based upon dynamically growing our economy, ending the tax cuts for the rich and addressing the scourge of tax evasion and avoidance.”
He added: “Where money needs to be raised it will be raised from fairer, more progressive taxation. We will be lifting the burden from middle and low-income earners paying for a crisis they did not cause.
“If we inherit a deficit in 2020, fiscal policy will be used to pay down the debt and lower the deficit but at a speed that does not put into jeopardy sustainable economic growth.”
Amazon, Google, Apple and Starbucks are among the global companies which have been accused of the tax avoidance in the past.
In April, the so-called Google Tax - a 25% tax on the profits of companies which shift their profits outside of the UK - was implemented by Chancellor George Osborne. In response, Amazon began booking sales made to customers in the UK through its UK branch, instead of diverting sales through Luxembourg, its European headquarters.
In a budget speech before the election, Osbourne also pointed out that these multinational businesses should “pay their fair share”.