Businesses warn PM on tax plans

Leading business figures have warned that David Cameron's plans to make companies release their tax affairs could undermine the economic recovery, according to the Daily Telegraph.

The Prime Minister yesterday launched an attack on corporate tax avoidance, saying it was time for businesses to "wake up and smell the coffee" - an apparent swipe at Starbucks.

A Conservative MP wrote to all of the FTSE 100 chief executives and 52 replied.

Out of those who replied, 32 of them warned the Government against publishing details of their tax affairs.

Prime Minister David Cameron said the G8 would focus on "trade, tax, transparency" this year during a speech at the World Economic Forum in Davos.

Labour MP Dennis Skinner said in the House of Commons yesterday that it was "gruesome" for the Prime Minister to be "heading out of austerity-riddled Britain to wine and dine at Davos with 50 top bankers who helped to create the economic crash, several hundred tax avoiding millionaires".

Responding in the Commons, David Cameron said:

David Cameron will call for greater international cooperation on tax evasion in a speech to the World Economic Forum at Davos.

The Prime Minister will urge leaders to work together and tackle tax evasion by multi-national companies and the super-rich.

Mr Cameron will make the issue a key focus during Britain's presidency of the G8 leading economic powers.

A Downing Street spokesman said he would not be talking about Europe in the wake of his landmark promise of a referendum.