Shabana Mahmood MP, Labour’s Shadow Exchequer Secretary to the Treasury, responding to reports that the Government failed to close a tax loophole costing £500 million a year, said:

“Ministers must explain why they decided not to close this loophole which could be losing the exchequer over £500 million a year.

"And this revelation comes after official figures showed the amount of uncollected tax went up to £35 billion last year.

"At a time when millions are struggling with the rising cost of living and the deficit is high, it’s even more vital that we clamp down on tax avoidance. But this Government is totally failing to do so.”