Conservative MEPs made clear today they will be supporting proposals put forward by British EU Commissioner Lord Hill which would force multi-national companies to publicly report their tax dealings on a country-by-country basis.

Economics spokesman Kay Swinburne MEP said: "Lord Hill's proposals reflect UK Government policy. Conservative MEPs support this proposal and welcome the opportunity to fully debate the introduction of public country-by-country reporting for the largest multi-national companies."

The legislation, which will be implemented via the Accounting Directive, intends to crackdown on tax avoidance and will be considered by the European Parliament later this year.

However,  Conservative MEPs opposed  a Labour-backed amendment which sought to add public tax reporting to separate legislation considered by the Parliament in Strasbourg today.

Tax spokesman Ashley Fox said:  "To try bring forward this issue as an amendment to a piece of technical legislation is inappropriate and cheap opportunism by the Socialists and Greens.

"We are interested in framing good legislation that will tackle tax avoidance, not empty political gestures."