Brown set to veto EU's tax move

CHANCELLOR Gordon Brown is heading for a bruising clash in Europe just days after he delivers his Budget on 17 April. He will veto plans for harmonisation of corporation tax, a move described by the European Commission as 'essential for making the EU the most competitive economy in the world'.

Among the proposals that will be blocked is a single 'European Corporate Income Tax', some of the proceeds of which would go straight to the Commission.

A conference in Brussels on 29 April will look at 'the best way forward' for tax harmonisation. But the Treasury confirmed that it is opposed to all such interference in corporate taxation. 'That has been our position for quite some time,' said a spokesman. Last year, Paymaster General Dawn Primarolo told Parliament: 'Tax harmonisation is not the way forward for Europe.'