Tax Avoidance and Evasion

Margaret Hodge Excerpts

Monday 13th November 2017 Commons Chamber

[Dame Margaret Hodge (Barking) (Lab)]

I seek leave to propose that the House should debate a specific and important matter that should have urgent consideration, namely the systemic issues that facilitated the tax avoidance and evasion uncovered by the Paradise papers. I am supported in this request by many Members on both sides of the House.

The Paradise papers are the most important and shocking data we have seen so far to lift the lid on behaviour that hard-working people in Britain who pay their taxes find deplorable, but which we now know is scarily normal and acceptable among the very wealthy and powerful global corporations. The leaked documents comprise 31.4 million files. These have been analysed over a year by 381 journalists from 67 countries. In the UK, we have The Guardian and “Panorama” to thank for their brilliant investigative work and for placing the data relevant to us under public scrutiny.

The papers come from one of the so-called magic circle of international lawyers: Appleby. More than half of Appleby’s offices are based in UK tax havens. Tax havens are central to most of the tax avoidance schemes uncovered and are where people hide their money. Conservative estimates put the wealth held in tax havens at $7.6 trillion. The UK tax havens are at the heart of this abuse. By stubbornly upholding secrecy, our Crown dependencies and overseas territories enable widespread tax avoidance to take place. The UK Government are not just complicit in but central to their success, and it is our financial institutions—lawyers, bankers and accountancy firms—that are mostly responsible for finding the devices employed to avoid tax.

At the very moment when Simon Stevens was pleading for money for the NHS, we were learning about the enormous range of artificial structures used by the rich, famous and powerful to avoid making their proper contribution, through taxation, to our NHS. The Paradise papers raise hugely significant issues for the House and the Government. We urgently need the opportunity to debate the systemic implications of the revelations. This is not a minor but a mega issue of public concern. A debate now would enable Members to express their views before the Chancellor puts his finishing touches to the Budget.

[Mr Speaker]

I have listened carefully to the right hon. Lady’s application and I am satisfied that the matter raised is proper—[Interruption.] Order. Could Members extend the courtesy of listening to the business of the House? If they want to conduct a private conversation, they can do so outside the Chamber. I will return to this very important matter, which might preoccupy a lot of people outside the House.

I have listened carefully to the application from the right hon. Lady, and I am satisfied that the matter raised is proper to be discussed under Standing Order No. 24. Does she have the leave of the House?

Application agreed to.