Oral Answers to Questions

Greg Mulholland Excerpts

Tuesday 7th June 2016 Commons Chamber

[Harriett Baldwin]

I hope that my hon. Friend has experienced only the ambulance chasers, not the whiplash. He is right to highlight the cost that this puts on motorists, which we estimate is about £90 a year for every motorist in the country. That is why we have already taken steps to reform this area. Last year in the autumn statement we announced further reforms, which will remove the right to cash compensation for minor whiplash injuries, while ensuring that genuine claimants are rehabilitated.

[Greg Mulholland (Leeds North West) (LD)]

Genuine tax avoidance must be tackled, but HMRC pursuing people who invested legally in schemes, not to avoid tax, and who are now being hit with accelerated payments, is an affront to natural justice, treating them as guilty until proved innocent. Will the Chancellor meet me and a group of people who are seriously detrimentally affected by this?

[Mr Osborne]

I am afraid I completely disagree with the hon. Gentleman. He is opposing a measure that we have introduced which says to people who are in dispute with HMRC about the money they pay because of their potential use of tax evasion or avoidance schemes that they should pay up front and, if they win their case, they get their money. Every other taxpayer has to do that. As a result of the measure, we have raised hundreds of millions of pounds for public services and won some key court judgments. I find it remarkable for a Liberal Democrat to be siding with those who want to try to evade their taxes.