Craig Whyte tax scheme probe: Tax dodging drains £40bn a year
Craig Whyte tax probe: Tax dodging drains £40bn a year

The Record has revealed that Craig Whyte has been linked to a tax avoidance scheme. Whyte, a disgraced figure in Scotland after leading Rangers into financial ruin, remains active in business circles, connected to various companies that help wealthy individuals avoid tax.

A probe by TaxWatch UK into his activities highlights a problem in the UK of the super-rich failing to pay their fair share for things that help everyone live well, such as education and free healthcare.

Benefit fraud versus tax dodging

For decades, political rhetoric has focused on the welfare budget, stoking public outrage over benefit fraud. Yet this focus ignores a far larger drain on national wealth caused by tax dodging.

Benefit fraud overpayments stand at £7 billion, and those responsible for stealing public cash should be pursued. But while deliberate criminal tax evasion accounts for £5.5 billion, the total shortfall between tax owed and tax actually collected stands at a staggering £40 billion a year.

That includes legal tax avoidance schemes, aggressive accounting loopholes, hidden offshore wealth and corporate non-compliance. When the government allows ultra-wealthy individuals and multinationals to exploit loopholes, public services are starved of much-needed cash.

Uncollected revenue could relieve public services

That uncollected revenue represents money that could instantly relieve pressure on the NHS, fix crumbling schools, and repair local infrastructure. The double standard is glaring: immense resources are invested in catching benefit fraudsters, yet complex tax avoidance is treated as a soft touch.

Andy Burnham could sort this out by honouring Labour's manifesto pledge to crack down on offshore tax avoidance and other aggressive tax schemes. Closing these legal loopholes is not about punishing success, but about fairness and economic necessity.

Burnham Bounce fails to dent SNP

Labour's annual conference kicks off this weekend with Prime Minister Andy Burnham in confident mood. In England there is a Burnham Bounce, with the party appearing to recover from Keir Starmer's error-strewn reign, and finally tempting traditional Labour voters back from their flirtation with Nigel Farage and Reform.

But in Scotland there is precious little evidence Labour or Burnham are causing a dent in the SNP's armour. The PM has shown himself to be far from firm footed on politics north of the Border, and seems focused on his heartlands in the north of England.

With a new leader in Scotland, the PM needs to show voters he can improve lives, starting with lower energy bills. He must also drag the debate away from independence and the constitution. If Labour does not start cutting through with voters soon, the Burnham Bounce will start to look more like a burst baw.