Shabana Mahmood MP, Labour’s Shadow Exchequer Secretary to the Treasury, responding to HMRC’s tax gap figures for 2011-12, said:

“At a time when millions are struggling with the rising cost of living and the deficit is high, it’s even more vital that everyone pays their fair share of tax.

"But these figures show the Government is failing to tackle tax avoidance and evasion with the value of the tax gap now up to £35 billion.

"And David Cameron is so out of touch that he’s just given a £3 billion tax cut to people on over £150,000, while falling real wages mean ordinary working people are on average £1500 a year worse off.”