Letter: Tax cuts and tax collection

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The Independent Online
Tax cuts and tax collection

Sir: The Government's aim of reducing public expenditure and cutting the size of the public sector in order to fund tax cuts (report, 15 July) fails to take account of the fact that cutting public sector jobs in areas such as tax and revenue compliance cuts the amount of tax collected.

Recent reports have indicated a pounds 7bn shortfall in projected tax revenue whilst at the same time 2,000 jobs are being cut in the Customs and Excise VAT inspectorate and 12,000 jobs in the Inland Revenue.

The Government cannot have it both ways. An investment in jobs in the area of tax compliance would not only pay for itself but would prevent the need for further cuts in much-needed public services.



Joint General Secretaries

Public Services Tax and Commerce Union

London SE1