Osborne defends position on HSBC

Monday 23 February 2015

George Osborne has defended his response to the HSBC scandal, insisting the Government was cracking down on tax dodgers but it would be wrong for him to interfere with HM Revenue and Customs investigations.

The Chancellor said the allegations involving HSBC's Swiss arm were "very serious" but it was not for politicians to decide on whether there should be prosecutions in individual cases.

He insisted the Government had provided HM Revenue and Customs with the resources needed to tackle illegal tax evasion.

Responding to the HSBC revelations Mr Osborne said: "There are very serious allegations, there are allegations around tax evasion, which is illegal."

But he said: "We have independent prosecuting authorities in this country and I don't think it would be right - and actually when you pause to think about it most people would agree - I don't think it right for the Chancellor of the Exchequer to be directing the prosecutions of individuals or individual companies."

The lack of direct political involvement "has been one of the bulwarks of freedom in this country for hundreds of years", he said at an event at the Tate Modern art gallery in London.

But he added: "I did say when I came to office that I wanted to see more prosecutions. We resourced HMRC accordingly and as a result prosecutions are up fivefold in this parliament compared to the last parliament."

International agreements with authorities such as those in Switzerland meant the exchange of information would be much simpler, he added.

"That's coming in in the next couple of years, it is one of the biggest changes in the fight against tax evasion," he said.

Labour has been pressing for Mr Osborne to answer questions about his knowledge of the HSBC scandal and the Government's decision to make the bank's former boss Lord Green a minister.

Shadow chief secretary to the Treasury Chris Leslie said: "George Osborne has finally emerged, but he still hasn't answered any of the key questions over the HSBC scandal.

"He cannot continue to duck responsibility for HMRC's failure to act or the decision to make Lord Green a Conservative minister. Why has there only been one prosecution out of 1,100 names? Why did George Osborne and David Cameron appoint Lord Green as a minister months after the Government received these files? Did they discuss tax evasion at HSBC with Lord Green, or did they turn a blind eye?

"And why did the Treasury sign a deal with the Swiss authorities in 2012 which prevents the UK from actively obtaining similar information in the future? Labour will tackle tax avoidance, close tax loopholes and hold a root and branch review of HMRC immediately after the election. It's time George Osborne stopped treating the British people with contempt and started giving us some answers."