Oral Answers to Questions

Debate between Baroness Clark of Kilwinning and David Gauke

Tuesday 27th January 2015 Commons Chamber

[Katy Clark (North Ayrshire and Arran) (Lab)]

1. What recent estimate HM Revenue and Customs has made of the amount of uncollected tax in the UK.

[The Financial Secretary to the Treasury (Mr David Gauke)]

Her Majesty’s Revenue and Customs published its latest tax gap estimates on 16 October 2014. In 2012-13, the tax gap was estimated at £34 billion, 6.8% of total tax due.

[Katy Clark]

The Government’s own figures suggest that the tax gap has increased by £3 billion. Independent experts say that the tax gap could be up to £120 billion. In North Ayrshire, the local tax office has been closed by this Government, and since 2010, 10,000 people in the Treasury have lost their jobs, despite the fact that every tax inspector brings in far more—in taxes—than they cost. Do the Government believe that they should rethink their strategy?

[Mr Gauke]

The reality is that the tax gap for 2012-13 was lower than in any year under the previous Labour Government. As for the yield—the money that is brought in by HMRC as a consequence of its activity—that has gone up by £9 billion since 2010-11, and is forecast to be £26 billion this year. That is a very good record.

Oral Answers to Questions

Debate between Baroness Clark of Kilwinning and David Gauke

Tuesday 14th May 2013 Commons Chamber

[Mr Gauke]

This is the Government who have found £1 billion to support HMRC in dealing with tax evasion and tax avoidance. This is the Government who have provided resources in that area. Yes, we can find efficiency savings in HMRC—just as the previous Government did, to be fair—but we are putting more into those parts of HMRC that get the money in. We are making dramatic progress, with HMRC’s yield hitting record levels.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Q12. If he will introduce a statutory code of conduct for the banking industry.

Oral Answers to Questions

Debate between Baroness Clark of Kilwinning and David Gauke

Tuesday 11th December 2012 Commons Chamber

[Katy Clark (North Ayrshire and Arran) (Lab)]

Does the Minister think that HMRC losing an extra 10,000 staff will make it harder or easier to tackle tax avoidance and evasion?

[Mr Gauke]

It is important to focus on the number of HMRC staff working on tax evasion and tax avoidance. Let me give two statistics: between 2005 and 2010 that number fell by 9,000, but between 2010 and 2015 it will increase by 2,500.

Oral Answers to Questions

Debate between Baroness Clark of Kilwinning and David Gauke

Tuesday 16th November 2010 Commons Chamber

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

Her Majesty’s Revenue and Customs is currently reviewing options for delivery of the tax inquiry services that it provides through its network of inquiry centres, contact centres and online services over the next spending review period. HMRC is committed to providing services that are cost-effective and also meet the needs of its customers.

[Katy Clark]

We have already seen a reduction of 25,000 staff and 200 collection offices, which must result in a worse service to the public. We are also seeing cuts in the amount of money spent on dealing with tax avoidance and evasion. The Minister’s colleague mentioned an extra £900 million, but we have been told that that is not additional money, and that less money is actually being spent on dealing with tax collection. Is it not time that we prioritised not only giving a better service, but collecting more tax?

[Mr Gauke]

That money is new investment to tackle tax avoidance and evasion. It is specific, targeted funding. As for the service that is provided, it is right for HMRC’s service to adapt to the way in which customers change their behaviour. We have seen a 40% reduction in the number of people using inquiry centres over the last four years, and HMRC should of course adapt to that.

Oral Answers to Questions

Debate between Baroness Clark of Kilwinning and David Gauke

Tuesday 12th October 2010 Commons Chamber

[Katy Clark (North Ayrshire and Arran) (Lab)]

18. How much tax revenue each enforcement and compliance officer in Her Majesty’s Revenue and Customs collected on average in the last financial year.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

HMRC’s enforcement and compliance officers engage in a wide range of activities, from dealing with relatively low-value errors made by small businesses and individuals to addressing significant risks among the largest corporate bodies, as well as countering criminal attacks on the tax and duty system. For that reason, HMRC does not collect statistics on the average revenue collected by an enforcement or compliance officer. Results of HMRC’s compliance activity were published in its 2009 autumn performance report.

[Katy Clark]

Given that we have already lost more than 9,000 enforcement and compliance officers, and I am told that each officer raises more than £600,000 after their salary, does the Exchequer Secretary not think that he should get those statistics and start recruiting people rather than sacking them?

[Mr Gauke]

As I said earlier, my right hon. Friend the Chief Secretary made an announcement a couple of weeks or so ago of about £900 million-worth of investment in HMRC over the spending review period. It is important to tackle compliance, and the Government, perhaps more than our predecessors, will be determined to do that.