PCS: Bank of England governor urged to back PCS tax justice campaign
The governor of the Bank of England Mervyn King was questioned by the Public and Commercial Services union at the TUC annual conference about closing the tax gap as an alternative to public spending cuts.
PCS national president Janice Godrich took the opportunity to raise PCS’s tax justice campaign with Mr King following his address to the conference today (15 September).
With the amount of tax uncollected each year estimated to be around £120 billion, Janice asked if Mr King agreed with the union that tax loopholes should be closed, HM Revenue and Customs should increase staff rather than cut them and decisive action should be taken against tax evaders.
Mr King said he could not comment on tax policy but that our case seemed “persuasive”.
Since HMRC was formed in 2005, 30,000 jobs have been cut, leading to huge delays in dealing with enquiries from members of the public and businesses, and one million items of post going unopened.
Earlier in the week PCS published its alternative economic strategy, which includes collecting the tax that is evaded, avoided and uncollected through a lack of resources. The union also says the government should create jobs rather than cut them to help the economy to grow, and invest in areas such as housing, renewable energy and public transport.
Speaking afterwards, Janice said: “We have seen recently the massive problems caused by staff cuts in HMRC and with billions of pounds in tax revenue going uncollected every year, it makes absolutely no sense to go even further.
“If the chancellor of the exchequer was persuaded by our arguments as Mr King seems to be, and had even a fraction of this money in his coffers, it would change the terms of the debate about public spending overnight.
“Collecting the tax that is owed, largely by very wealthy individuals and organisations, is part of the real alternative to the government’s cuts that are being driven by dogma rather than good economics.”
ENDS
Notes
– To download a copy of the union’s ‘There is an alternative: the case against cuts in public spending’ document visit www.pcs.org.uk
– For information and interview requests, contact PCS national press officer Richard Simcox on 07833 978216
– The Public and Commercial Services union represents civil and public servants in central government. It has more than 300,000 members in over 200 departments and agencies. It also represents workers in parts of government transferred to the private sector. PCS is the UK’s fifth largest union and is affiliated to the TUC. The general secretary is Mark Serwotka and the president is Janice Godrich
– Follow PCS on Twitter
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