A budget to end tax loopholes
Tuesday, April 14th, 2009Today The Guardian has published an open letter calling on the Chancellor of the Exchequer to close in on personal tax avoidance which it is estimated costs the country around £15bn a year in lost public revenue. Chuka is a signatory to the letter along with child poverty campaigner, Professor Ruth Lister, Wes Streeting, President of the National Union of Students, Jon Cruddas, MP for Dagenham and 12 others. The letter is produced below:
We write to highlight personal tax avoidance by some of the wealthiest in our country, and to urge the chancellor to take action to close in on personal tax avoidance in the budget. Over 15 times as much is lost through tax avoidance at the top than to benefit fraud at the bottom. If those at the top choose not to pay their fair share, it has grave consequences for everyone. It robs our society of the funds that could end child poverty, or the money needed to increase welfare benefits and help alleviate the conditions which drive the most vulnerable to commit things such as benefit fraud in the first place.
We call on the chancellor to close in on tax avoidance, close in on tax loopholes and deliver greater tax justice. Measures could include: abolishing the domicile rule; abolishing tax havens; taxing investment income equally to income earned through labour; introducing a new wealth tax for all those earning over £250,000; introducing a new tax on bonuses; adopting a general anti-avoidance rule; removing secrecy from all British-controlled tax havens and increasing the number of tax inspectors to allow more thorough investigation.
It is time to close in on tax avoiders, recoup public money and ensure everyone in society pays their fair share – we urge the government to act.
Professor David Byrne, Jon Cruddas MP, Gavin Hayes, Neal Lawson (Compass), Sunder Katwala (Fabian Society), Professor Ruth Lister, Richard Murphy, Guy Palmer (The Poverty Site), Ann Pettifor (Advocacy International), Nancy Platts (Labour PPC, Brighton Pavilion), Howard Reed, Dr Sally Ruane, Clifford Singer (The Other TaxPayers’ Alliance), Wes Streeting (NUS), Chuka Umunna (Labour PPC, Streatham).

This consultation will look at introducing compulsory licensing and industry-wide standards for:

CAP’s support workers help those with debt problems by working out sustainable budgets based on income and living expenses, ensuring that essential bills are prioritised. Because the charity is recognised within the finance industry, it is able to work with creditors to stop unfair interest and charges where possible for those who need help. The charity can set up a CAP account, meaning debtors can pay a weekly or monthly sum through CAP to cover all their bills and debts in affordable repayments, allowing them to work their way out of debt without feeling pressured. This helps those who have experienced debt problems to get back their self-respect and take control of their lives again. Christians Against Poverty’s advice is free, non-judgmental and open to those from all backgrounds.
New data shows that in Lambeth and across England the NHS has met its target to treat patients within a maximum of 18 weeks from referral by their GP – an achievement which was unimaginable 12 years ago. Commenting on the figures, Umunna (pictured, right, with Johnson) said: