Bookmark and ShareStewart Wallis is nef‘s Executive Director.

Letter to The Times, 26 May 2010.

Sir, While your leading article (“Cuts and the coalition”, May 25) hails the “restoration of the public finances” through the cuts announced on Monday, it is important to remember that this is not an expenditure crisis, it’s a revenue crisis caused by the behaviour of the banks. Failure to tackle the bank issue will inevitably lead to the same situation remerging all too soon.

Government should, as a first step, look to rein in the money it is already owed. In November last year the Treasury Select Committee reported that HM Revenue and Customs was sitting on £28 billion of unpaid tax bills that had been agreed but not settled. A further £25 billion could be sourced by plugging tax loopholes that the Government considers contravene the spirit of the law.

Stewart Wallis
Executive Director, New Economics Foundation

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