George Osborne has been under immense pressure in the House of Commons. His move to lend £7 billion to Ireland is deeply unpopular. MPs rightly worry that it may not have the capacity to repay.
But the Guardian then notes this:
The chancellor also rejects a call from another MP that Ireland should be forced to raise its 12.5% corporation tax. It would not be in Ireland's interest to force through tax changes that "lead to an immediate flight of international businesses."
Osborne, the tax dodger, the believer in the Celtic Tiger, sticks to his principles. Ireland couldn’t lose international business he says. No way. Google and Microsoft might then have to pay tax in the UK on the profits I think they make on their sales into this country – currently recorded in Ireland. And that would never do, would it? In Google’s case I have estimated this loss at £100 million a year to the UK. Well that would be a useful loan insurance premium on the Irish loan risk, I think. But not according to George Osborne, who clearly does not understand these issues.