Tax Evasion

08 Apr

Question

Tax Evasion

The House of Commons' Question session on the topic of Tax Evasion was marked by detailed inquiries and strategic responses aimed at addressing the UK’s burgeoning tax gap. The session underscored the Government's commitment, reinforced through recent budgetary measures, to curb tax evasion by closing the tax gap. Key discussions shifted between past failures, ongoing strategies, and future plans to ensure fiscal responsibility:

Initial Inquiry: Paul Waugh’s opening question set the tone by challenging governmental steps towards tax evasion.
Government's Strategy: James Murray responded by highlighting an ambitious plan enacted through recent budgets. This plan aims to secure an additional £7.5 billion in revenue by 2029, marking a significant effort to decrease the tax gap.
Labour's Stance on Past Failures: Waugh criticized the previous administration's shortcomings, citing a substantial £5 billion tax gap increase in 2023. He proposed prudently reinvesting recovered taxes into policies such as a child poverty strategy.
Strategic Financial Impact: Murray emphasized the importance of closing the tax gap to bolster public finances. He highlighted initiatives like free breakfast clubs linked to improved fiscal health, with early adopters launching imminently.
International Concerns: Ben Lake shifted focus to VAT evasion by overseas entities, querying governmental measures. Murray reiterated progress on previous commitments to combatting this through legal and procedural means.

Outcome

The session resulted in a reaffirmed government commitment towards tax regulation enhancements. Discussions anticipated improved public service funding via recovered taxes, prioritizing educational and anti-poverty measures.

£7.5 billion

Projected increase in gross tax revenue per year due to upcoming measures to close the tax gap by 2029-30.

Statistics & Context

£7.5 billion: Projected additional annual revenue from reduced tax gaps by 2029-30.
£5 billion: Tax gap increase noted for 2023.
£450 benefit: Financial relief per family from new breakfast club initiatives across England.

£5 billion

Reported increase in the UK's tax gap during 2023, highlighting the urgency for reform.

750 schools

Launch of the government’s early adopters scheme for breakfast clubs across primary schools in England. Expected to provide significant financial relief to families.

Outcome

A strategically aligned government approach towards closing the tax gap and new commitments to social investments impressed MPs. Before the session concluded, mutual acknowledgment of strides in tax collection policies was evident.

Key Contributions

Paul Waugh

Labour

Inquired about actions against tax evasion.

James Murray

Responded by emphasizing that closing the tax gap is a government priority.

Ben Lake

Raised concerns about overseas VAT evasion and fraudulent practices.

Original Transcript

Paul Waugh

Rochdale

Lab/Co-op

Question

UIN: 903656

1. What steps she is taking to help tackle tax evasion.

The Exchequer Secretary to the Treasury

James Murray

11:44

Closing the tax gap and ensuring that everyone is paying the tax they owe is one of the Government’s top priorities. The autumn Budget marked a step change to close the tax gap with the most ambitious package ever.

The Government built on that in the spring statement, taking the total additional gross tax revenue raised per year to £7.5 billion by 2029-30.

Paul Waugh

11:45

The UK tax gap grew by a shocking £5 billion in 2023, in the dying days of the Conservatives, and former Chancellor Nadhim Zahawi was sacked for failing to declare an investigation by His Majesty’s Revenue and Customs into his tax affairs. I welcome the Treasury’s crackdown on tax avoidance.

Does my hon. Friend agree that Labour’s prudence with a purpose will be shown by investing those taxes in the child poverty strategy this summer?

James Murray

11:45

I thank my hon. Friend for his remarks. He is right to say that the £7.5 billion of additional revenue from closing the tax gap is a huge boost to the public finances, which enables us responsibly to fund public services and deliver key priorities.

Those priorities include free breakfast clubs at all primary schools in England. The first 750 of them are beginning this month via our early adopters scheme, which is worth £450 to parents and carers.

To go further the Government will bring forward their comprehensive child poverty strategy as soon as possible.

Ben Lake

Ceredigion Preseli

What steps are the Government taking to address the concerns of overseas companies that are evading VAT and online sales by fraudulently registering UK addresses?

James Murray

11:46

At the spring statement the hon. Gentleman will have seen the Government set out progress on measures in the autumn Budget to tackle a range of sources of tax avoidance and the tax gap.

That includes prosecuting more fraudsters, introducing a new HMRC reward scheme for informants, tackling phoenixism and tackling the offshore non-compliance tax gap.

← Speaker’s Statement Economic Growth →

Terms Privacy Data Source

All content derived from official parliamentary records