Unchecked UK have today called on the UK Government to take urgent action to close the ‘tax gap’, as new figures from HMRC show that in Hackney South and Shoreditch, the gap between the money owing to HMRC and that collected is £66m – more than enough to fund the Hackney Central station redevelopment.

The money owed would also be enough to hire 2052 teachers, 2572 nurses or 1122 GPs in Hackney South and Shoreditch.

Across the UK, the gap between the money owed to HMRC and that collected stands at £35bn a year. This figure is more than the UK’s entire annual spend on police, fire services, courts and prisons combined.

Figures from Unchecked UK reveals the sum equates to:

More than the amount we need to fund coronavirus recovery

More than double what is required to fund the transition to Net Zero

Six-times what the UK Government is investing into the Levelling Up Fund

Unchecked’s report: “The UK Tax Gap”, explores in more detail the implications of the gap for communities across the UK. The organisation has also produced an interactive “Tax Gap Map”, showing the local tax gap in each constituency in the UK and how the missing money could be used to pay for more GPs, teachers, and other local services.

Previous research from Unchecked UK has highlighted ​​how cuts to enforcement bodies have undermined the rules and regulation that ensure a level playing field. HMRC is one of the most egregious examples of this trend. Between 2000 and 2016, HMRC saw its funding slashed by 40%. The equivalent of 17,000 years of experience were lost in 2018 alone due to staff cuts. This is despite the fact that investment made by HMRC to recover tax generates huge returns. On average, every £1 that HMRC invests in pursuing unpaid tax returns £15.

Polling by Unchecked UK has also shown a tremendous public appetite to ensure that tax collection is fair, with young voters in Red Wall seats significantly more likely to support stronger regulations on tax, rather than a weakening of existing safeguards.

Phebe Clay, Director, Unchecked UK, said:

“These figures clearly demonstrate what a difference this missing cash could make to Hackney South and Shoreditch. The UK Government must make an immediate and ambitious commitment to close the tax gap, which remains stubbornly high.

“We know that enforcement bodies like HMRC have seen their funding slashed in the past decade, resulting in fewer investigations and people available to ensure the rules are followed. But this is a false economy. Investment into enforcing tax rules will pay for itself multiple times over. The UK Government must make it a priority to provide HMRC with the resources they need to get the job done and to collect the money owed to all of us.

“At a time when Britain is looking to build back better, make the transition to net zero, pay for an ageing population and level up its economy, we can’t afford a tax gap of this scale. If HMRC were a business, Hackney South and Shoreditch taxpayers would be its shareholders. We should demand a better deal.”