MEP condemns government over tax office cuts

16 November 2015

Molly Scott Cato MEP has condemned as ‘devastating’ and a ‘false economy’ government plans to close 137 local tax offices across UK [1].

The closures are part of a national HMRC ‘modernisation’ programme which will see local offices closed and the opening of 13 new regional centres [2].

Molly Scott Cato said:

“The government’s stated manifesto commitment to crackdown on tax evasion and avoidance lies in tatters [3]. Not only will these cuts have a devastating impact on jobs across the UK it is also clear they are a false economy. Any savings from these cuts and restructuring will be massively offset by reductions in tax revenues. Research shows that the tax gap for 2014 amounted to a colossal £122bn, just a little less than the annual budget for the NHS [4].

“MPs and tax experts have previously concluded that a local HMRC presence is essential to maintaining confidence in our tax system and ensuring taxpayers comply with their obligations. I agree, and support the Public and Commercial Services Union (PCS) in their call for a full public consultation and full parliamentary scrutiny of the proposals. [5]"

Dr Scott Cato is a member of the European Parliament’s special committee on tax which was set up in the wake of the LuxLeaks scandal [6] to investigate corporate tax avoidance.

ENDS

 

Notes:

1] Full list of closures http://www.bbc.co.uk/news/business-34800243 In the South West the offices and dates when each office is due to close are: Avonmouth (Custom House) 2017-18, Bournemouth (Holland House) 2019-20, Bristol (101 Victoria Street) 2017-18, Bristol (Crescent Centre) 2017-18, Exeter (Longbrook House) 2020-21, Gloucester (Twyver House) 2017-18, Plymouth (The Apex) 2016-17, Plymouth (Westpoint) 2016-17, Redruth (Piran House) 2018-19, Swindon (Wiltshire Court) 2017-18, Taunton (Michael Paul House) 2016-17.

[2] http://uk.businessinsider.com/thousands-of-jobs-to-be-lost-as-hmrc-closes-offices-2015-11

[3] http://www.theweek.co.uk/election-2015/63328/conservative-manifesto-2015-the-policies-david-cameron-has-in-store

[4] http://www.taxresearch.org.uk/Documents/PCSTaxGap2014Full.pdf

[5] http://www.pcs.org.uk/en/news_and_events/pcs_comment/pcs_comment.cfm/devastating-hmrc-closure-plan-must-be-subject-to-parliamentary-review

[6] http://www.icij.org/project/luxembourg-leaks

Molly Scott Cato is the first elected Green MEP for the South West of England and Gibraltar and is one of 50 Green/EFA MEPs in the European Parliament. She sits on the Economics and Monetary Affairs Committee.

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