Adopting president Joe Biden’s plan for a 21% global tax rate would raise £14.7bn for the UK Exchequer, whilst if the rate was at 15% the additional revenue would be only £7.9bn, suggests a briefing paper published by the IPPR Centre for Economic Justice.

The IPPR points out that the changes would not affect companies already paying their full tax in the UK.

The new tax rate would target companies who currently take advantage of current tax rules to shift their profits overseas and end the decades-long ‘race to the bottom’ between countries trying to undercut one another on corporation tax.

The IPPR sets out the multiple arguments put forward against the global tax rate with counter reasons as to why the British government should support the proposals, including UK sovereignty over tax policy, the proposed digital services tax, and the impact on economic growth.