Britain is constantly told there isn\u2019t enough money.<\/p>\n
We\u2019re told there isn\u2019t enough to build council housing. Not enough to improve transport. Not enough to invest in local communities. Not enough to repair public services.<\/p>\n
Ignore modern monetary theory for a moment, and ask instead, what if that isn\u2019t the real problem?<\/p>\n
In this video, I examine HMRC\u2019s latest tax gap statistics, and they reveal something ridiculous. According to HMRC\u2019s own figures, around \u00a317.3 billion of corporation tax owed by small companies is not being paid<\/span>. That is part of a total corporation tax gap of around \u00a321 billion<\/span>, and it raises serious questions about whether Britain is choosing not to collect money that is already legally due in tax.<\/p>\n Andy Burnham says he wants to invest much more if he becomes Prime Minister, but he also says he will stick to Rachel Reeves\u2019 fiscal rules. If he believes the government needs more money before it can spend (even if that is not true), then recovering taxes that are already legally owed surely has to come before introducing entirely new taxes.<\/p>\n In this video I explain:<\/p>\n \u2022 what the tax gap actually is;<\/p>\n \u2022 why the small company corporation tax has become the fastest-growing part of it;<\/p>\n \u2022 why HMRC\u2019s own figures point towards an explosion of non-payment by small companies;<\/p>\n \u2022 why honest businesses are being placed at a competitive disadvantage;<\/p>\n \u2022 how \u00a317 billion could fund around 50,000 new council homes every year;<\/p>\n \u2022 why I drafted legislation over a decade ago that would have tackled much of this problem.<\/p>\n This isn\u2019t simply a debate about tax.<\/p>\n It\u2019s about whether Britain still believes in enforcing company law, maintaining fair competition, supporting local economies and encouraging honest business to invest by ensuring that everyone plays by the same rules.<\/p>\n