Unpaid Tax

Baroness Alexander of Cleveden Excerpts

Monday 7th July 2025 Lords Chamber

Asked by

[Baroness Alexander of Cleveden]

To ask His Majesty’s Government how much tax they estimate is unpaid each year, and what steps they are taking in response.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, the tax gap is estimated to be 5.3% of total theoretical tax liabilities. At the Budget last year, the Chancellor announced the most ambitious package ever to close the tax gap. The Government then built on this at the Spring Statement, setting out plans to make it easier for taxpayers to pay the right amount of tax for a modern and digital tax system. These measures will raise an additional £7.5 billion of tax revenue each year by the end of the Parliament.

[Baroness Alexander of Cleveden (Lab)]

I thank the Minister for his Answer. He will be aware that in May the National Audit Office reported on collecting the right tax from wealthy individuals. It noted that

“underlying levels of non-compliance among the wealthy … could be much greater”

than anticipated and that, based on the most recent figures available, HMRC’s “wealthy team” devoted just 5% of its casework to investigating offshore non-compliance. Given that, what timelines will the Government set for HMRC for tackling non-compliance by the wealthy, particularly surrounding offshore assets?