Starbucks to pay more corporation tax

Coffee chain Starbucks has agreed to pay more UK corporation tax, after a public outcry over how little it pays.

Kris Engskov, managing director of Starbucks UK, announced that the company would pay "a significant amount of tax during 2013 and 2014, regardless of whether the company is profitable during these years".

Margaret Hodge, the Chair of the House of Commons Public Accounts Committee, which recently questioned representatives from Starbucks and other companies about their tax affairs, says this is the first step.