Source · Select Committees · Public Accounts Committee
Recommendation 2
2
HMRC does not know the relative size of tax gaps in the four nations of...
Conclusion
HMRC does not know the relative size of tax gaps in the four nations of the UK or across different industries. HMRC already publishes breakdowns of the tax gap by taxpayer group, tax type and behaviour. However, HMRC does not calculate or publish estimates of the tax gap for each of the four nations of the UK. We recognise the difficulties in doing so but HMRC ought to be able to produce reasonable estimates for the tax gaps in the four nations of the UK, particularly since the devolution of Income Tax powers to Scotland from 2016–17, and Wales from 2019–
Government Response
Acknowledged
HM Government
Acknowledged
2020. Funding offered is determined by an objective formula, based on assessment of the Town Investment Plan. Feedback is provided on request. 2.4 In relation to funding decisions on the Towns Fund and similar local growth programmes, the department will provide: where relevant, a record of Ministerial recusal from decisions affecting the constituencies of Ministers; a statement of the criteria that have been used to make decisions; and the details of scores or other assessments that have been used as part of the decision-making. 2.5 This will be provided to the Committee when all decision making is complete. On the Towns Fund, this will be when all 101 Towns have submitted Town Investment Plans and funding decisions have been made. 2.6 When Heads of Terms are agreed between the department and Towns, the department plans to publish these on GOV.UK. 2.7 The Levelling Up Fund announced at Spending Review 2020 includes £300 million previously set aside for a Towns Fund competition. This element of the Levelling Up fund will continue to support towns, and the department will set out the processes around it in due course.