A call for action at the G8

In less than a month’s time, the UK hosts the G8 Summit. With hunger, tax, trade and transparency all on the agenda, the UK has a unique opportunity to show global leadership on these issues.

The scale of hunger is devastating. There is enough food in the world for everyone, yet 1 billion people still go hungry. 2.3 million children every year die from malnutrition – to put that in perspective, that is around 16,000 children every day. Or one child every five seconds.

We need radical change if we are going to stop this global injustice. It’s estimated that a world free from hunger would cost just over $50 billion dollars a year – but to achieve that it will take a commitment by all the G8 countries to meet their 0.7% aid targets, tackle tax havens and tax avoidance and fight for greater transparency.

But so far we have seen little action. George Osborne failed to use the G7 meeting to set out any concrete steps to promote economic growth or tackle tax avoidance. Despite tough words on making tax and transparency priorities, David Cameron has failed to bring serious proposals to the table. The Government have repeatedly refused to close tax loopholes which the evidence shows has a negative impact on developing countries. And we have already seen our Prime Minister, under pressure from the right-wing of his party, break his Manifesto and Coalition agreement promise to legislate for our 0.7% target on aid spending.

Can we really trust the Government to bring forward the changes we need?

That is why last week I launched the Labour Party’s G8 Campaign calling on David Cameron to use Britain’s Presidency of the G8 to take action on aid, tax and transparency to move towards a world free from hunger.

Not only do we need G8 countries to match the UK’s commitment to aid spending and fulfil their international obligations, but we need to ensure we are acting on the structural causes of poverty and hunger.

According to OECD figures, developing countries lose three times more to tax havens than they receive in aid each year. As Ed Miliband and Ed Balls made clear this week Labour is putting forward five steps to tackle tax avoidance. A form of country-by-country reporting so that large multinational companies should have to publish the key pieces of information which people need to assess the amount of tax they pay. Extending the regime requiring tax avoidance schemes to be declared to cover global transactions. Opening up tax havens. Challenging the Government to properly assess the impact of Corporation Tax changes on developing countries. And fundamental reform of the Corporation Tax system because the shifting of profits and use of tax havens is the symptom of a system which is failing to keep up with global economic developments.

Developing countries will never be able to lift themselves out of poverty if they cannot collect taxes to fund their own services. These measures would be a boost for developing countries enabling them to increasing their tax revenues and reduce their dependency on aid.

The Last time the UK hosted the G8 in 2005, Labour brokered ambitious commitments on climate change, investment, debt relief and trade for development. Labour can make a difference this time.

Join me and the 5000 other people who have already signed up in calling on David Cameron to use this opportunity to make a difference and take action on aid, tax and transparency for a world free from hunger.

Sign up here: action.labour.org.uk/G8-campaign

Ivan Lewis is Shadow Secretary of State for International Development and MP for Bury South