PCS to re-launch Tax Justice policy

PCS is updating and re-launching our tax justice policy, aimed at reminding the government that the money needed to protect and improve public services is there and there is no need to rehash the Tories’ austerity agenda to find it.

Working with emeritus professor of accounting at the University of Essex, Lord Sikka, and supported by a wealth of material produced by a range of taxation experts, PCS has developed a policy that examines a range of changes to the UK’s tax system, which could bring in a baseline of around £70 billion. This would make massive inroads into what tax experts estimate is the £100 billion ‘tax gap’, the tax that should be paid but isn’t, because of avoidance (legal), evasion (illegal), and simply because it isn’t being collected, including because of a lack of HMRC resources.

This £70 billion is a very conservative figure, given the untold billions hidden away in, or routed through, many of the UK’s overseas territories; and where in most cases there is little or no transparency around the money that’s being sheltered.

PCS general secretary Fran Heathcote said: “Compare the baseline £70 billion figure PCS has identified, which in its entirety would come from the fair taxation of the wealthiest in our society, with the £1.5 billion that the government expects to raise through slashing pensioners’ eligibility for the Winter Fuel Payment or the £5 billion they expect to raise through cutting Personal Independence Payments for the disabled, and it’s clear for everyone to see that the government is looking for money in all the wrong places.”

PCS is preparing to formally re-launch the policy in June, with a Westminster-based event.

Lord Sikka, who worked with PCS in developing the policy, said: “It’s been a welcome opportunity to work with PCS, taking forward the union’s campaign for a fairer tax system, changes which are vital if we are to rebuild our essential public services.”

Download and read “The need for tax justice” report.