I recently highlighted concerns that the Government is planning to cut the number of HMRC staff, even though an estimated £35 billion of taxes goes uncollected.
Cutting HMRC staff is counter-productive in closing the tax gap, the difference between how much should be collected in tax and how much is actually collected in tax. The Government estimates that cuts in these staff will save around £300m up to 2025 and then rising cash savings estimated at more than £90m by 2028 with additional costs of £75m a year from 2021 avoided.
I was disappointed that the Minister seemed unconcerned by the £35 billion tax gap and seemed to suggest it was an insignificant figure. An interesting point since this is a higher figure than Scotland’s entire budget each year.
Watch the exchange below.