High street tax dodging schemes 'spreading like wildfire'

Honest high street businesses are being forced to compete in a two-tier tax system as tax dodging schemes “spreading like wildfire", MPs on the treasury select committee have been told.

The Treasury Select Committee, which includes Bobby Dean MP, have been doing an inquiry into tax evasion and avoidance on Britain's high streets. The inquiry comes amid growing concern over dodgy high street businesses linked to fake goods, tax evasion, and illegal vape sales.

Experts warned that weak enforcement is allowing rogue businesses to operate and costing the Treasury billions of pounds each year. They said that once tax avoidance schemes prove successful, they quickly spread. Meanwhile, a lack of information sharing between HMRC and local authorities makes enforcement increasingly difficult.

The committee also heard concerns that because landlords become liable for business rates on empty premises, they are incentivised to prioritise occupancy over carrying out proper checks on tenants. The experts warned this disadvantages businesses that play by the rules by inflating rents.

Bobby Dean MP said, "It's simply too easy for rogue businesses to exploit the gaps in the system. We need to get serious about creating a level playing field and protecting those who play by the rules. That means HMRC, councils and enforcement bodies working closer together, with stronger powers and tougher sanctions."