Picking up the tax cheats’ tab

Today (March 16) the country’s eyes are on George Osborne as he attempts to plug an ÂŁ18bn hole in his budget.

He told the BBC’s Andrew Marr Show ‘we need to act now so we don’t pay later.’ The Chancellor has warned of ÂŁ4bn of further spending cuts in today’s budget.

He revealed a new goal to make savings of 50p in every ÂŁ100 of government spending by 2020. Mr Osborne stands accused of hitting the most vulnerable with the latest cuts set to fall on the welfare budget yet again.

Disability benefit payments are likely to be cut by a further ÂŁ1.2bn hitting over half a million disabled people who need help with dressing and using the bathroom.

Meanwhile tax cheats are robbing the UK economy of more than ÂŁ5bn. So why cut ÂŁ4bn from the welfare bill and punish the vulnerable further when closing tax loopholes would raise more money?

Charity Oxfam has called for a crackdown on tax havens to stop big businesses sitting on piles of cash and withholding funds that could help fight poverty.

Richest 1 per cent  

In a report, End the Era of Tax Havens, Oxfam reveals that more than a quarter of the wealth created in Britain over the past 15 years has ended up in the pockets of the richest 1 per cent of people.

Figures from Swiss bank Credit Suisse show that the net wealth for people in the UK has increased from £6tn in 2000 to £10tn in 2015. And while just 7p in every pound of wealth created went to the 30m people who make up the nation’s poorest 50 per cent, around 26p went to the richest 1 per cent.

“Osborne’s cuts have damaged the economy and people’s lives, time and time again. That the rest of us keep picking up the tab for richest 1 per cent is disgraceful,” said Steve Turner, Unite assistant general secretary.

“Osborne has continually hit the most marginalised the hardest while letting the very richest off the hook,” he added.

It is believed that British tax-dodgers are holding more than ÂŁ170bn in tax havens.

Oxfam is calling on Osborne to clamp down on tax dodging by demanding UK companies publish country-by-country data on profits and tax contribution.