Oral Answers to Questions

Paul Goggins Excerpts

Tuesday 11th September 2012 Commons Chamber

[Mr Osborne]

We are committed to doing that. My hon. Friend is right that the tax gap—the amount of money that should be collected but is not collected—rose from £35 billion to £39 billion under the previous Government. As I have said, our compliance and enforcement efforts have already increased the amount raised by £3 billion, and later this week we will confirm that we have raised £500 million more in extra tax from high net worth individuals as a result of our efforts through Her Majesty’s Revenue and Customs. We are taking action, but need it to be supported, yet the Labour party recently voted against the changes to disguised remuneration, which were an attempt to clamp down on a particularly egregious form of tax avoidance.

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

One group of people who could not avoid paying tax are the disabled Remploy staff who were recently made redundant. They were put on an emergency code, with the result that their holiday and notice pay was taxed at almost 50%. HMRC has promised refunds, but will the Chancellor go back to his Department and ensure that the payments are made as a matter of urgency and within the current tax year?

[Mr Osborne]

I will pursue the right hon. Gentleman’s point with all haste.