Oral Answers to Questions

Debate between Heidi Alexander and David Gauke

Tuesday 4th November 2014 Commons Chamber

[Heidi Alexander (Lewisham East) (Lab)]

4. What estimate Her Majesty’s Revenue and Customs has made of the amount of uncollected tax in the last year for which figures are available.

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

HMRC published its latest tax gap estimates on 16 October, and in 2012-13 the gap was estimated at £34 billion—6.8% of total tax due.

[Heidi Alexander]

Thirty-four billion pounds is a very significant amount of money, and under this Government the amount of uncollected tax has risen by £3 billion. Why has the Minister allowed that to happen?

[Mr Gauke]

Let us be clear: a rate of 6.8% is lower than was achieved in any year under the last Labour Government. In addition, HMRC’s yield—the money that has come in as a consequence of its efforts—was £7 billion higher in 2013-14 than it was in 2010-11. The fact is that this Government have an excellent record on dealing with tax avoidance, tax evasion and the tax gap.