Addressing the Labour Party's annual conference in Bournemouth, the former Chancellor of the Exchequer said the government will move to close tax escape clauses enjoyed by buyout firms, should any be revealed by a current review — the findings of which will be published at the time of the forthcoming pre-Budget report.
Mr Brown said: 'Whenever there is a loophole that shouldn't exist, we take action. Since 1997, we've closed a massive number of loopholes where they exist. Sometimes it is very difficult to do so because there are lawyers and accountants who are always trying to find loopholes. On this issue of private equity, I can assure you that we will do so'.
The Prime Minister's words on the controversial issue follow those of a number other public figures in recent weeks. Earlier this month Liberal Democrat deputy leader and erstwhile economist Vincent Cable attacked tax relief for private equity as a 'expensive gift to the wealthy'. And CBI director-general Richard Lambert called for clarity on tax arrangements for buyout companies.
The PM has praised private equity in the past, defending it against criticism from trade unions. Speaking in Parliament earlier this year, he sought to 'congratulate' the sector for the 'creation of more jobs at a faster rate'.
