Oral Answers to Questions

Nia Griffith Excerpts

Tuesday 12th October 2010 Commons Chamber

The Chancellor of the Exchequer was asked—

[Nia Griffith (Llanelli) (Lab)]

1. What steps his Department is taking to increase the level of tax compliance.

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

The Chief Secretary to the Treasury announced £900 million of investment in Her Majesty’s Revenue and Customs to tackle avoidance, evasion and fraud, sending a clear signal that the spending review will be focused on both fairness and deficit reduction. It will include an increase in prosecutions and steps to tackle organised criminal excise smuggling. HMRC also recognises the importance of helping businesses to get their tax right and has launched additional education and guidance packages in order to do so.

[Nia Griffith]

Given the enormous importance of reducing the tax gap, and thereby reducing the deficit, what assurances can the Minister give that actually he will be taking on more tax officers and ensuring a good geographical spread to make sure we get in the maximum tax revenues possible?

[Mr Gauke]

As was made clear in the Chief Secretary to the Treasury’s statement, the Government are determined to reduce the tax gap. It currently stands at £42 billion. It is too high, but we are determined to take measures to address it and we have already announced proposals by which we can reduce the tax gap.