Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 30 July 2024 to Question 1811 on Taxation, what the tax gap of (a) 2005-06 and (b) 2022-3 is adjusted for inflation in (i) 2005-06 and (ii) 2022-23 real terms.

The UK tax gap in 2022-23 is estimated to be 4.8% of total theoretical tax liabilities, or £39.8 billion in absolute terms. The tax gap has fallen from 7.4% of total theoretical liabilities in 2005-06, or £32.4bn in absolute terms.

The 2005-06 and 2022-23 tax gap estimates can be adjusted for inflation using the published GDP deflators available at: www.gov.uk/government/statistics/gdp-deflators-at-market-prices-and-money-gdp-june-2024-quarterly-national-accounts

The government is committed to tackling the tax gap, through increasing HMRC's compliance staff, investing in HMRC’s technology infrastructure, and making policy changes to tackle tax non-compliance. The government will set out further details at the budget.