Autumn Statement

Margaret Hodge Excerpts

Thursday 5th December 2013 Commons Chamber

[Mr Osborne]

I agree with my right hon. Friend that unless we have a sustainable state, with borrowing and public finances under control, it will be very difficult to get the stability during which sustained growth happens. We have seen that in many of our neighbours, and that was the risk facing the United Kingdom in 2010. We have absolutely demonstrated that we can stick with a plan to deal with the deficit and take hard decisions on public finances, and see job creation and business expansion happen alongside that.

[Margaret Hodge (Barking) (Lab)]

Last year, the Prime Minister told tax avoiders to wake up and smell the coffee. Will the Chancellor explain why in last year’s statement he promised that £3.2 billion would come into our coffers from Swiss bank accounts, yet since April he has managed to collect a meagre £440 million? Will he also explain why the OECD’s head of tax has singled out the UK as the only country giving companies new opportunities to avoid tax by changes in the controlled foreign company rules? When will the Government’s reality match their rhetoric?

[Mr Osborne]

First, all receipts from any of these tax measures are now independently audited by the Office for Budget Responsibility, so there is an independent audit. The truth is that some of these taxes turn out to raise less than we hoped, and some raise more. For example, we are getting less from Switzerland, and we are speaking directly with the Swiss Government about that, but the deal with Liechtenstein is bringing in more money than was forecast. Some of the other measures we have taken—for example, to prevent the avoidance of stamp duty on residential property, particularly in London—are raising more money than forecast.

On the OECD, the United Kingdom and the Prime Minister have led the effort at international level to get international rules on base erosion and profit shifting to make sure that there is a global response to a global problem.