Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts
Tuesday 16th November 2010

(13 years, 5 months ago)

Commons Chamber
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Justine Greening Portrait Justine Greening
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We are examining ways in which we can help our UK companies to export more easily. The Prime Minister and the Chancellor have already led delegations to two key markets, China and India, where we hope that we can export more. That is critical if we are to put our economy back on its feet and it stands alongside the measures that we are taking to support companies creating jobs here, and the measures that we are taking to encourage investment in our country.

Baroness Clark of Kilwinning Portrait Katy Clark (North Ayrshire and Arran) (Lab)
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13. What assessment has been made of the likely effects on Her Majesty’s Revenue and Customs’ tax inquiry services for the public of the outcome of the comprehensive spending review.

David Gauke Portrait The Exchequer Secretary to the Treasury (Mr David Gauke)
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Her Majesty’s Revenue and Customs is currently reviewing options for delivery of the tax inquiry services that it provides through its network of inquiry centres, contact centres and online services over the next spending review period. HMRC is committed to providing services that are cost-effective and also meet the needs of its customers.

Baroness Clark of Kilwinning Portrait Katy Clark
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We have already seen a reduction of 25,000 staff and 200 collection offices, which must result in a worse service to the public. We are also seeing cuts in the amount of money spent on dealing with tax avoidance and evasion. The Minister’s colleague mentioned an extra £900 million, but we have been told that that is not additional money, and that less money is actually being spent on dealing with tax collection. Is it not time that we prioritised not only giving a better service, but collecting more tax?

David Gauke Portrait Mr Gauke
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That money is new investment to tackle tax avoidance and evasion. It is specific, targeted funding. As for the service that is provided, it is right for HMRC’s service to adapt to the way in which customers change their behaviour. We have seen a 40% reduction in the number of people using inquiry centres over the last four years, and HMRC should of course adapt to that.