Sir, A number of G20 leaders have called for a tougher approach to tax havens. Gordon Brown has promised a “crackdown on those tax havens that siphon money from developing countries”, and called for “an international agreement for the exchange of information in relation to tax cases.” As organisations operating in more than 100 countries, and with an interest in international development, we fully support these goals. Tax evasion and avoidance are big obstacles to development: multinational corporations’ tax evasion, to take just one part, is estimated to cost developing countries $160 billion (£110 billion) in public revenue each year, far in excess of the $100 billion they receive in aid. Much of this flows to so-called tax havens.

This is why we will expect Mr Brown and his counterparts to deliver. The solution must be multilateral, it must be based on the automatic exchange of tax information, and tax havens must be compelled to participate through an objective system of assessment and sanctions. Anything less — especially a blacklist that can be avoided through bilateral agreements with a handful of powerful nations — will not deliver for developing countries.

Mr Brown must take the lead on this issue at the G20 summit. The City of London is the jewel in the crown of a global finance industry that has tax havens — and tax avoidance — woven into its very fabric. Among its overseas territories, Britain counts many of the world’s most significant tax havens; its banks, accountancy firms and multinational companies include many global leaders in tax avoidance. We urge G20 leaders to support this action. But if the G20 falls short on this promise, we will look to Mr Brown to explain why.

Ramesh Singh

Chief Executive, ActionAid International

Daleep Mukarji

Chief Executive, Christian Aid

Bernd Nilles,

Secretary-General, CIDSE

Alex Wilks

Director, Eurodad

Barbara Stocking,

Chief Executive, Oxfam GB

John Christensen

Director, Tax Justice Network

Sir, We write in a personal capacity in support of Europe playing a leading role at the London summit meeting on Thursday. The EU is home to the largest market in the world, worth an estimated $17.6 trillion. While responsible for just 7 per cent of the world’s population, it comprises 30 per cent of global output. The EU must encourage the G20 meeting to produce concrete outcomes, including devising a mechanism to monitor and act against protectionism, and in seeking again to complete the Doha Round on Development. The G20 leaders should agree to redouble efforts to advance the benefits of free trade and bolster the open multilateral trading system. People in both developed and developing countries would benefit enormously from an all-encompassing trade deal. The London summit takes place at a pivotal moment for the global economy. While it cannot offer a panacea, it can certainly move the global economy in the right direction.

Roland Rudd, Lord Brittan of Spennithorne, Roger Carr,

Guy Dawson, Sir John Parker, Vijay Patel, Stuart Popham,

Sir Michael Rake, Anthony Salz, Peter Shore, Paul Skinner,

Lady Judge

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