EXCLUSIVEBy . Matt Chorley, Mailonline Political Editor . PUBLISHED: . 04:59 EST, 23 January 2014 . | . UPDATED: . 12:38 EST, 23 January 2014 . Pitch: David Cameron said he wanted to make clear that Britain is open for business . David Cameron tonight vowed to make a 'sales pitch' to investors amid fears attacks by MPs on the tax affairs of global firms are deterring companies from doing business in Britain. MailOnline revealed that the Treasury is concerned about the impact of high-profile criticism of companies like Google, Amazon and Starbucks by Margaret Hodge, the Labour MP who chairs the public accounts committee (PAC). The Prime Minister will use a speech to global business leaders in Davos tomorrow to make clear Britain is open for business. He is expected to trumpet that the coalition is cutting corporation tax rates to just 20 per cent, the lowest in the G7, tearing up red tape and investing billions in infrastructure to attract more firms. Mr Cameron will seek to counter the negative messages emerging from the PAC which has resonated around the world. After a Treasury source told MailOnline there is 'no doubt' the attacks are having an impact on business, the CBI warned MPs against 'personal attacks'. Ahead of his major speech, Mr Cameron said he was in Davos to 'fly the flag for Britain and to attract investment to British shores'. He met with some of the largest investors into the UK including car firm Tata, which owns Jaguar Land Rover and British Steel, and Siemens which is investing in renewable and energy technology in the UK. He said he asked them: 'You’ve invested in Britain – we’ve had the biggest share of inward investment in Europe over the last couple of years – what more can we do to get more investment, more jobs?' He added: 'We are a very welcoming, open economy – that’s one of our sales pitches for Britain and I’m here to make that sale.' Global internet firms including Amazon, Google and Starbucks have faced the wrath of Margaret Hodge, chairman of the Public Accounts Committee, but there are fears the attacks could deter other investors coming to the UK . The government faces a difficult balancing act between offering a low tax regime which appeals to international firms while also being seen to take action against companies which do not pay their way. Miss Hodge has used her role as chairman of the PAC to repeatedly accuse multi-nationals of ‘siphoning’ profits out of the UK to low-tax countries. She has called for a boycott of companies including Starbucks, Amazon and Google in protest at what she said was ‘immoral’ avoidance of UK tax. But senior ministers have been warned by business leaders that the sustained attacks on well-known companies are deterring some from moving their headquarters to the UK. Treasury source . A Treasury source told MailOnline: ’There is no doubt it is having an impact. 'We are trying to show we have one of the most competitive corporate tax regimes in the world, but the message is being sent out if you come here you will be exposed to this sort of criticism from Margaret Hodge and her committee.’ Some companies which have a lower public profile are nervous of being subjected to the scrutiny of their financial affairs. The source added: ’The head of a company looking to move here would see the way other people have been hauled in front of MPs and subjected to criticism and will think: “I’m not doing that.” ‘The likes of Starbucks and Amazon will always be here, but other companies looking at Britain are being put off the idea of moving their headquarters here because they fear the level of public exposure for behaving perfectly legally.’ Critics note that the amount of tax uncollected by HM Revenue and Customs rose to £35billion last year . 'We're not accusing you of being illegal, we're accusing you of being immoral.' November 2012"I think one should boycott these companies. I do actually think that is the right thing to do.' November 2012 urging customers to snub Starbucks, Amazon and Google‘Companies like Amazon should pay their fair share of tax based on their economic activity in this country and the profits they make here. Its behaviour is not only unfair, it is anti-competitive, putting British businesses that do pay their proper tax at a disadvantage.’ May 2013‘I think you do do evil. That is, you use smoke and mirrors to avoid paying tax.’ May 2013, referring to Google's slogan 'Don't be evil'‘Why have you not litigated against one single internet company? Make a few cases, a few show cases. It’s so bloody obvious.’ October 2013, urging HMRC to take the likes of Google, Amazon and Facebook to court . There is particular concern about the effect of the PAC’s attacks in the US, where it is viewed as being as influential as powerful congressional committees which hold sway over major decisions on tax and spending. Katja Hall, CBI Chief Policy Director, said: 'It is right to have high levels of scrutiny into the activities of businesses, and companies recognise the increasing level of public interest in many areas of their operations. 'Any questioning into business  activity should be robust, fair and professional, and should not turn into personal attacks.' The unease was hinted at by Treasury minister David Gauke in a speech last year when he said it was ‘quite understandable’ that companies would be put off moving to the UK if they are ‘worried that their reputations will be unfairly damaged’ and if ‘perfectly legal and perfectly legitimate behaviour might be presented to the public as something different’. Mr Gauke said: ‘Tough action on tax avoidance, yes. But we must also recognise that if the debate is driven by myths and misunderstandings, we could risk jobs and investment in the UK.’ However, Miss Hodge insisted that she would be ‘completely robust’ in challenging any suggestion her committee’s work was damaging investment. Companies looking to relocate look at a range of factors, including the skills base of the workforce, the potential and whether employees would see it as a good place to live and work. ‘There is a range of issues and tax is just one,’ she added. ‘To be absolutely honest I think if we don’t get this right, if we don’t get the tax from one set of people we have got to find it from others and you end up damaging British companies with British workers. ‘I think it’s a completely fallacious argument that I am happy to have with them because I think they are wrong.’ David Cameron at the Davos summit last year took a swipe at Starbucks, saying companies had to 'wake up and smell the coffee' and pay the right tax, but this week he will present a more upbeat message to investors . While Ms Hodge’s committee has launched a sustained campaign against large companies’ tax arrangements, ministers have also joined the chorus of disapproval. A year ago at the Davos summit Mr Cameron appeared to single out Starbucks when he said ’companies need to wake up and smell the coffee’ and realise that customers wanted them to pay their way. The Prime Minister is expected to strike a very different tone when he returns to the gathering of global business and political leaders, instead emphasising efforts to attract investment into the UK. Chancellor George Osborne has repeatedly cut corporation tax - which is paid on the profits companies make - in order to persuade more foreign firms to set up the HQ in the UK. ‘The best way to help businesses is by lowering the burden of tax’, he said last month as he published data showing reducing the corporation tax rate actually increased the amount of money raised for Treasury coffers. When the coalition was formed it stood at 28 per cent but in April this year it will be 21 per cent, falling eventually to 20 per cent. Downing Street defended the right of Miss Hodge's committee to challenge companies about their tax affairs. Mr Cameron's official spokesman said: 'Committees and their business, that’s for them. What the Government is focused on of course is around the economic conditions which encourage inward investment into this country. How committees do their business, that’s for them.'
Public Accounts Committee chairman Margaret Hodge is accused of deterring investors .
Treasury says MPs' comments have a greater impact in the US .
Companies who could relocate to UK fear being humiliated in Parliament .
But Miss Hodge dismisses the 'completely fallacious argument'
Last year David Cameron mocked Starbucks but is now wooing investors .
EXCLUSIVEBy . Matt Chorley, Mailonline Political Editor . PUBLISHED: . 04:59 EST, 23 January 2014 . | . UPDATED: . 12:38 EST, 23 January 2014 . Pitch: David Cameron said he wanted to make clear that Britain is open for business . David Cameron tonight vowed to make a 'sales pitch' to investors amid fears attacks by MPs on the tax affairs of global firms are deterring companies from doing business in Britain. MailOnline revealed that the Treasury is concerned about the impact of high-profile criticism of companies like Google, Amazon and Starbucks by Margaret Hodge, the Labour MP who chairs the public accounts committee (PAC). The Prime Minister will use a speech to global business leaders in Davos tomorrow to make clear Britain is open for business. He is expected to trumpet that the coalition is cutting corporation tax rates to just 20 per cent, the lowest in the G7, tearing up red tape and investing billions in infrastructure to attract more firms. Mr Cameron will seek to counter the negative messages emerging from the PAC which has resonated around the world. After a Treasury source told MailOnline there is 'no doubt' the attacks are having an impact on business, the CBI warned MPs against 'personal attacks'. Ahead of his major speech, Mr Cameron said he was in Davos to 'fly the flag for Britain and to attract investment to British shores'. He met with some of the largest investors into the UK including car firm Tata, which owns Jaguar Land Rover and British Steel, and Siemens which is investing in renewable and energy technology in the UK. He said he asked them: 'You’ve invested in Britain – we’ve had the biggest share of inward investment in Europe over the last couple of years – what more can we do to get more investment, more jobs?' He added: 'We are a very welcoming, open economy – that’s one of our sales pitches for Britain and I’m here to make that sale.' Global internet firms including Amazon, Google and Starbucks have faced the wrath of Margaret Hodge, chairman of the Public Accounts Committee, but there are fears the attacks could deter other investors coming to the UK . The government faces a difficult balancing act between offering a low tax regime which appeals to international firms while also being seen to take action against companies which do not pay their way. Miss Hodge has used her role as chairman of the PAC to repeatedly accuse multi-nationals of ‘siphoning’ profits out of the UK to low-tax countries. She has called for a boycott of companies including Starbucks, Amazon and Google in protest at what she said was ‘immoral’ avoidance of UK tax. But senior ministers have been warned by business leaders that the sustained attacks on well-known companies are deterring some from moving their headquarters to the UK. Treasury source . A Treasury source told MailOnline: ’There is no doubt it is having an impact. 'We are trying to show we have one of the most competitive corporate tax regimes in the world, but the message is being sent out if you come here you will be exposed to this sort of criticism from Margaret Hodge and her committee.’ Some companies which have a lower public profile are nervous of being subjected to the scrutiny of their financial affairs. The source added: ’The head of a company looking to move here would see the way other people have been hauled in front of MPs and subjected to criticism and will think: “I’m not doing that.” ‘The likes of Starbucks and Amazon will always be here, but other companies looking at Britain are being put off the idea of moving their headquarters here because they fear the level of public exposure for behaving perfectly legally.’ Critics note that the amount of tax uncollected by HM Revenue and Customs rose to £35billion last year . 'We're not accusing you of being illegal, we're accusing you of being immoral.' November 2012"I think one should boycott these companies. I do actually think that is the right thing to do.' November 2012 urging customers to snub Starbucks, Amazon and Google‘Companies like Amazon should pay their fair share of tax based on their economic activity in this country and the profits they make here. Its behaviour is not only unfair, it is anti-competitive, putting British businesses that do pay their proper tax at a disadvantage.’ May 2013‘I think you do do evil. That is, you use smoke and mirrors to avoid paying tax.’ May 2013, referring to Google's slogan 'Don't be evil'‘Why have you not litigated against one single internet company? Make a few cases, a few show cases. It’s so bloody obvious.’ October 2013, urging HMRC to take the likes of Google, Amazon and Facebook to court . There is particular concern about the effect of the PAC’s attacks in the US, where it is viewed as being as influential as powerful congressional committees which hold sway over major decisions on tax and spending. Katja Hall, CBI Chief Policy Director, said: 'It is right to have high levels of scrutiny into the activities of businesses, and companies recognise the increasing level of public interest in many areas of their operations. 'Any questioning into business activity should be robust, fair and professional, and should not turn into personal attacks.' The unease was hinted at by Treasury minister David Gauke in a speech last year when he said it was ‘quite understandable’ that companies would be put off moving to the UK if they are ‘worried that their reputations will be unfairly damaged’ and if ‘perfectly legal and perfectly legitimate behaviour might be presented to the public as something different’. Mr Gauke said: ‘Tough action on tax avoidance, yes. But we must also recognise that if the debate is driven by myths and misunderstandings, we could risk jobs and investment in the UK.’ However, Miss Hodge insisted that she would be ‘completely robust’ in challenging any suggestion her committee’s work was damaging investment. Companies looking to relocate look at a range of factors, including the skills base of the workforce, the potential and whether employees would see it as a good place to live and work. ‘There is a range of issues and tax is just one,’ she added. ‘To be absolutely honest I think if we don’t get this right, if we don’t get the tax from one set of people we have got to find it from others and you end up damaging British companies with British workers. ‘I think it’s a completely fallacious argument that I am happy to have with them because I think they are wrong.’ David Cameron at the Davos summit last year took a swipe at Starbucks, saying companies had to 'wake up and smell the coffee' and pay the right tax, but this week he will present a more upbeat message to investors . While Ms Hodge’s committee has launched a sustained campaign against large companies’ tax arrangements, ministers have also joined the chorus of disapproval. A year ago at the Davos summit Mr Cameron appeared to single out Starbucks when he said ’companies need to wake up and smell the coffee’ and realise that customers wanted them to pay their way. The Prime Minister is expected to strike a very different tone when he returns to the gathering of global business and political leaders, instead emphasising efforts to attract investment into the UK. Chancellor George Osborne has repeatedly cut corporation tax - which is paid on the profits companies make - in order to persuade more foreign firms to set up the HQ in the UK. ‘The best way to help businesses is by lowering the burden of tax’, he said last month as he published data showing reducing the corporation tax rate actually increased the amount of money raised for Treasury coffers. When the coalition was formed it stood at 28 per cent but in April this year it will be 21 per cent, falling eventually to 20 per cent. Downing Street defended the right of Miss Hodge's committee to challenge companies about their tax affairs. Mr Cameron's official spokesman said: 'Committees and their business, that’s for them. What the Government is focused on of course is around the economic conditions which encourage inward investment into this country. How committees do their business, that’s for them.'
of Margaret Hodge, chairman of the Public Accounts Committee, but there are fears the attacks could deter other investors coming to the the US, where it is viewed as being as investment in the UK.’ However, Miss Hodge workers. ‘I think it’s a completely fallacious because I think they are wrong.’ David Cameron at