Last week the Local Government Association (LGA), for reasons best known to itself, decided to blow its own trumpet and have a go at HMRC's tax collection record.
The LGA said that uncollected tax was costing the equivalent of
£1,370 for every household in England and Wales.
Cllr Sharon Taylor, chairwoman of the LGA's finance panel and Labour
leader of Stevenage Borough Council in Hertfordshire, is quoted in the
Huffington Post:
"If central
government's collection rates were as good as those of councils, the
public purse would be more than £20 billion better off.
That's almost double the size of the total spending cuts announced
in the Chancellor's spending round. When the taxman's balance sheet
falls short, it takes a toll on public services across the board.
Local government is the most efficient part of the public sector.
Council tax has one of the highest collection rates of any tax. We
cannot afford for local services like road maintenance, libraries and
social care to continue paying the price of those who evade and avoid
their tax liability. We all need government to do better in tackling
this.
Local authorities collect council tax from more than 22 million
homes. If councils can obtain more than 97% of this, it is reasonable
that Whitehall should be able to match this.
Government has made positive noises on tackling unpaid tax. We now
want to see a clear timetable which sets out how government will
significantly improve their tax collection record."
Pass the sick bag someone!
Aside from the bizarre delusion that local government is the "
most efficient part of the public sector", the comparison of council tax with tax collected by HMRC is absurd.
1 Council tax is straightforward to calculate, administer and collect.
2 Council's know where you live.
3 Tax collected by HMRC covers a veritable smorgasbord of income streams/types (eg salary, bonuses, capital gains, IHT etc etc); ie it is not always straightforward, easy to administer or calculate.
The LGA is talking complete and utter bollocks!
Tax does have to be taxing.
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