POLITICS

Tory Tax Avoidance Crackdown Missed Forecast By £2.6bn, Says New Analysis

A 'black hole'.

22/12/2016 15:45
BEN STANSALL via Getty Images

A flagship Tory scheme to crack down on tax avoidance has fallen short of its forecast by £2.6bn, new analysis shows.

A Labour Party report used figures published in November by the Office of Budget Responsibility (OBR) which it said showed the scheme had created a “black hole” on £2.6bn in UK finances.

Labour’s Shadow Chancellor John McDonnell said the Conservatives had an “abysmal record” on tackling the problem.

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“Labour Party analysis of the Tories abysmal record on tackling tax avoidance, as highlighted last month by the OBR, shows that this failure is equivalent to the cost of employing over 12,000 nurses, full-time, every year, for five year”, he said.

“This is at the same time as the staff growth rate in the NHS is slowing and as it faces an unprecedented squeeze on its finances.

“The Tories are failing our health service and its patients. Only Labour that will stand up for the NHS and provide the investment that is desperately needed.”

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David Cameron

Former Prime Minister David Cameron set out three major schemes to combat the tax dodging between 2013 and 2014, after calling it “frankly and morally wrong”.

But in October his successor Theresa May pledged to take more action against financial advisers and accountants who help the rich avoid tax.

In her speech at the Conservative Party conference May said “If you’re a tax-dodger, we’re coming after you:.

“If you’re an accountant, a financial adviser or a middleman who helps people to avoid what they owe to society, we’re coming after you too.

“An economy that works for everyone is one where everyone plays by the same rules. So whoever you are you – however rich or powerful – you have a duty to pay your tax. And we’re going to make sure you do.”

In August, HM Revenue & Customs set out plans to fine advisers who “enabled” of tax avoidance.

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