Pat McFadden comments on figures showing that the tax gap increased from £30.8bn to £35.8bn

Pat McFadden MP, Labour’s Shadow Chief Secretary, commenting on figures from HMRC showing that the tax gap increased from £30.8bn in 2020/21 to £35.8bn in 2021/22, said:

“These are hugely concerning figures, showing that the Treasury failed to close the tax gap at all in percentage terms in in Rishi Sunak's final year in charge, and instead saw it grow by £5 billion in cash terms in the space of twelve months, to the highest level the gap has reached since 2015.

“Closing the 'tax gap' - the gap between tax owed and tax paid - helps make sure everyone pays their fair share, so it is a particular concern when we see the amount of income tax going uncollected from the wealthiest UK taxpayers rising by a quarter in just one year, from £1.2 billion to £1.5 billion.

“And despite the past promises that have been made, today's latest tax gap report still includes no data on the offshore tax gap. The Tories need to explain as a matter of urgency why almost £36 billion of the tax owed in 2021/22 was not collected, and commit to publishing an estimate of the offshore tax gap as soon as possible.”

Ends

Notes

• This year’s estimate of the tax gap shows growth in the cash value of the tax gap by £5bn, and no progress in closing the tax gap as a proportion of the tax take: https://www.gov.uk/government/statistics/measuring-tax-gaps/1-tax-gaps-summary
• Last year the government promised to publish an estimate of the offshore tax gap alongside this years report: https://webarchive.nationalarchives.gov.uk/ukgwa/20230206220439/https://www.gov.uk/government/statistics/measuring-tax-gaps/methodological-annex
• But this year they have failed to include it, saying delay has pushed it back to Autumn: https://www.gov.uk/government/statistics/measuring-tax-gaps/methodological-annex