Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Adrian Sanders Excerpts
Tuesday 8th June 2010

(14 years, 6 months ago)

Commons Chamber
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Danny Alexander Portrait Danny Alexander
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The hon. Gentleman just needs to look around the world to see that the argument for rapid fiscal consolidation is becoming stronger by the day. He should look at the G20 and the independent assessments. Clearly, making the sort of decisions that we are making now—the £6 billion exercise and the decisions that will no doubt be announced in the Budget—is absolutely essential to create a responsible basis for the public finances and return the country to the right economic track.

Adrian Sanders Portrait Mr Adrian Sanders (Torbay) (LD)
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16. What steps his Department is taking to reduce the level of tax avoidance.

David Gauke Portrait The Exchequer Secretary to the Treasury (Mr David Gauke)
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Tackling tax avoidance is essential, and we will make every effort to do so. We are committed to preventing avoidance through deterrence, and by ensuring that we have a robust legislative framework. We detect avoidance early using the disclosure of tax avoidance schemes rules and other information. We tackle avoidance quickly where we find it by strengthening legislation or through the operational work of Her Majesty’s Revenue and Customs.

Adrian Sanders Portrait Mr Sanders
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Recent research has shown that up to £120 billion a year is lost to tax avoidance. Will the Minister ensure that he looks at the way in which HMRC works, and does better so that people will not have to pay higher taxes and receive poorer services as a consequence?

David Gauke Portrait Mr Gauke
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I am grateful to the hon. Gentleman for his question. We would disagree with the number, as the tax gap estimate produced by HMRC is £40 billion. None the less, that is a significant sum, and it is absolutely right that people pay the tax that is due, and HMRC will continue to pursue matters to reduce tax avoidance.