Government Tax Targets Attract Criticism
The Treasury Select Committee has criticised the government’s current tax targets. In particular, the Committee has questioned the accuracy of the expectations on which these targets are based.
An example used to illustrate this point was the yield that came from tax agreements with countries such as Switzerland. The deal carried a target of £3 billion of revenue to be generated in 2013. In fact, it generated only around a quarter of that, bringing in just £800 million.
According to the chair of the committee, Andrew Tyrie MP, predictions such as this are “inherently extremely uncertain” and definite figures should not be so freely placed upon them.
The Committee’s criticisms came in its report on the Autumn Statement, which was issued in December. It heaped further pressure onto chancellor George Osborne following the revelation of a black hole in the public purse amounting to £20 billion.