The government has failed to collect £42 billion in unpaid taxes, according to an influential group of MPs.
The House of Commons Public Accounts Committee published a report on Wednesday stating that HMRC does not collect the 5% tax it is liable each year.
MPs also accused the government, among other things, of not having “ambition” to fight fraud.
HMRC is set to recover a quarter of the estimated £4.5 billion it lost to fraud and error in its Covid support schemes.
Meg Hillier is the chair of the Labor Party Committee. She stated that the government was losing a lot of money.
“The £42 billion now owed to HMRC in unpaid taxes would have filled much of the notorious public spending black hole this year,” she said.
Rishi Sunak and Chancellor Jeremy Hunt said tax increases and public spending cuts were needed to fill a £50 billion gap in nations’ finances.
HMRC collected £731.1bn in taxes and fees in 2021-22, an all-time high – but still owed £42bn.
Christine Jardine, spokesperson for the Liberal Democrat Cabinet Office, stated that ministers must “get in control”.
She said that the government was losing huge amounts of money because it is unable to collect taxes it owes and its incompetence.
“We need to take serious steps to close this tax black hole.”
“Anything less than this would be a failure to the millions of people living with the cost of living crisis.”
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