Labour Party Vows to Take Action against Tax Avoidance

This article was last updated on April 16, 2022

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The opposition party has increased its pressure on the government by promising to introduce a “Tax Dodging Bill” if it wins the general election. In response to the recent scandal involving HSBC’s confession to have aided clients in tax avoidance, The Labour Party has called upon Lord Green and David Cameron to make a full statement about his role at HSBC and his appointment as a minister in 2011.

In addition to that, the party pointed out that only one out of every 1,100 people who avoided or evaded tax have been prosecuted following the revelations of malpractice at HSBC bank, which were first given to the government in May 2010. Shadow chancellor, Ed Balls, mentioned in his remarks that “David Cameron and George Osborne have totally failed to tackle tax avoidance in the last five years.” He added that “they have failed to close the loopholes we have highlighted. And the amount of uncollected tax has risen under this government. I am determined that the next Labour Government will act where the Tories have failed.” He alleged that “we will close loopholes that cost the exchequer billions of pounds a year, increase transparency and toughen up penalties. And we will act in our first Finance Bill.”

The Labour Party promises to introduce its first Finance Bill within the first months of government, which would include penalties for those caught by the General Anti-Abuse Rule and close loopholes used by hedge funds to avoid stamp duty. In addition to that, it stressed to scrap the government’s “Shares for Rights” employment change, which the party has warned could assist tax dodging.