Oral Answers to Questions

Debate between Sarah Champion and David Gauke

Tuesday 9th December 2014 Commons Chamber

[Sarah Champion (Rotherham) (Lab)]

14. What estimate HM Revenue and Customs has made of the amount of uncollected tax in the UK.

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

HMRC published its latest tax gap estimates on 16 October 2014. The tax gap in 2012-13 was estimated to be £34 billion, which was 6.8% of the total tax due.

[Mr Gauke]

The reason we have not pursued that policy is that, having looked at it carefully, we do not believe that it would raise anything like the revenue that has been suggested, nor that it would do anything for the UK’s competitiveness. The Government have consistently taken action on tax avoidance, tax evasion and aggressive tax planning. I would happily list the measures, Mr Speaker, but I suspect that you would not allow me the time to do so. By 2015-16, we believe that those measures will be bringing in £7.6 billion a year.

[Sarah Champion]

I thank the Minister for his answers to Question 5 and to these questions. Will he explain why I am fighting against funding cuts for families in crisis in Rotherham because the council does not have enough Government funding to support them, while some big companies are getting away with not paying a penny in corporation tax?

[Mr Gauke]

Very difficult decisions have had to be made to deal with the deficit that we inherited. On the contribution from larger companies, as we have heard, the tax take from large companies through corporation tax has continued to rise and we have continued to take measures to deal with tax avoidance. As I have said, just last week, we announced that we would operate the diverted profits tax, the details of which will be set out tomorrow. That is an example of where the Government are taking tough, practical action to ensure that everybody pays what is required under the law.