Rather than "shaming" tax avoiders, the coalition should stop them

The latest "crackdown" on tax avoidance is nothing of the sort.

In these austere times, tax avoidance, as Ken Livingstone and Jimmy Carr learned to their cost, is a toxic practice. In view of this, the government is preparing to announce a new "crackdown" on avoiders today. Treasury minister David Gauke will tell Policy Exchange that scheme operators may be forced to hand over client lists to inspectors, and will be "named and shamed" for not sticking to the rules.

Gauke will say:

We are building on the work we have already done to make life difficult for those who artificially and aggressively reduce their tax bill.

These schemes damage our ability to fund public services and provide support to those who need it.

They harm businesses by distorting competition. They damage public confidence.

And they undermine the actions of the vast majority of taxpayers, who pay more in tax as a consequence of others enjoying a free ride.

Laudable words, you may think. But Gauke's suggestion that "naming and shaming" tax avoiders will reduce the practice is either extremely optimistic or extremely disingenuous. Were negative publicity enough to dissuade avoidance, men like Philip Green, hired by the government to advise on its spending cuts (the need them for them partly derived from his and others' avoidance) would have paid up long ago. Rather than merely "shaming" avoiders, the government needs to stop them. Yet there is nothing in today's announcement to suggest it will do so.

As Richard Murphy noted on The Staggers last month, the coalition's much-vaunted "anti-avoidance rule" will do little to end the cat-and-mouse game between HM Revenue and avoiders. As the government closes one scheme, another opens. Only an anti-avoidance principle, which looks at intent as well as practice, would significantly reduce avoidance. As Murphy explained:

A principle is something quite different. It looks at intent. It is not about box ticking, as rules are (which is why they are so easy to get round - general anti-avoidance rules included). It is about looking at what you did and using that evidence to assess on the balance of probabilities what your intentions were.

On this point, George Osborne, who memorably described tax avoidance as "morally repugnant", and his Treasury colleagues remain mute.

Finally, one might ask why, if the coalition is so opposed to avoidance, its Budget rewarded it. The stated reason for the abolition of the 50p tax rate was that high-earners were avoiding it. As Osborne stated in the Budget

HMRC find that an astonishing £16 billion of income was deliberately shifted [emphasis mine] into the previous tax year - at a cost to the taxpayer of £1 billion, something that the previous Government's figures made no allowance for.

But this was an argument for reducing tax avoidance, not for cutting taxes for the one per cent. While the rich avoided the 50p rate in the first year of its existence (by bringing forward income from 2010/11 to 2009/10 in order to pay the 40p rate), this was not a trick they could have repeated. Yet Osborne cut the rate all the same. It was as if he had rewarded welfare cheats by increasing their benefits. Seen in this light, the government's new fondness for moralising against avoiders is merely an attempt to change the subject. We should ensure it cannot.

Jimmy Carr recently said he made a "terrible error of judgment" in using a tax avoidance scheme. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The deafening killer - why noise will be the next great pollution scandal

A growing body of evidence shows that noise can have serious health impacts too. 

Our cities are being poisoned by a toxin that surrounds us day and night. It eats away at our brains, hurts our hearts, clutches at our sleep, and gnaws at the quality of our daily lives.

Hardly a silent killer, it gets short shrift compared to the well-publicised terrors of air pollution and sugars food. It is the dull, thumping, stultifying drum-beat of perpetual noise.

The score that accompanies city life is brutal and constant. It disrupts the everyday: The coffee break ruined by the screech of a line of double decker buses braking at the lights. The lawyer’s conference call broken by drilling as she makes her way to the office. The writer’s struggle to find a quiet corner to pen his latest article.

For city-dwellers, it’s all-consuming and impossible to avoid. Construction, traffic, the whirring of machinery, the neighbour’s stereo. Even at home, the beeps and buzzes made by washing machines, fridges, and phones all serve to distract and unsettle.

But the never-ending noisiness of city life is far more than a problem of aesthetics. A growing body of evidence shows that noise can have serious health impacts too. Recent studies have linked noise pollution to hearing loss, sleep deprivation, hypertension, heart disease, brain development, and even increased risk of dementia.

One research team compared families living on different stories of the same building in Manhattan to isolate the impact of noise on health and education. They found children in lower, noisier floors were worse at reading than their higher-up peers, an effect that was most pronounced for children who had lived in the building for longest.

Those studies have been replicated for the impact of aircraft noise with similar results. Not only does noise cause higher blood pressure and worsens quality of sleep, it also stymies pupils trying to concentrate in class.

As with many forms of pollution, the poorest are typically the hardest hit. The worst-off in any city often live by busy roads in poorly-insulated houses or flats, cheek by jowl with packed-in neighbours.

The US Department of Transport recently mapped road and aircraft noise across the United States. Predictably, the loudest areas overlapped with some of the country’s most deprived. Those included the south side of Atlanta and the lowest-income areas of LA and Seattle.

Yet as noise pollution grows in line with road and air traffic and rising urban density, public policy has turned a blind eye.

Council noise response services, formally a 24-hour defence against neighbourly disputes, have fallen victim to local government cuts. Decisions on airport expansion and road development pay scant regard to their audible impact. Political platforms remain silent on the loudest poison.

This is odd at a time when we have never had more tools at our disposal to deal with the issue. Electric Vehicles are practically noise-less, yet noise rarely features in the arguments for their adoption. Just replacing today’s bus fleet would transform city centres; doing the same for taxis and trucks would amount to a revolution.

Vehicles are just the start. Millions were spent on a programme of “Warm Homes”; what about “Quiet Homes”? How did we value the noise impact in the decision to build a third runway at Heathrow, and how do we compensate people now that it’s going ahead?

Construction is a major driver of decibels. Should builders compensate “noise victims” for over-drilling? Or could regulation push equipment manufacturers to find new ways to dampen the sound of their kit?

Of course, none of this addresses the noise pollution we impose on ourselves. The bars and clubs we choose to visit or the music we stick in our ears. Whether pumping dance tracks in spin classes or indie rock in trendy coffee shops, people’s desire to compensate for bad noise out there by playing louder noise in here is hard to control for.

The Clean Air Act of 1956 heralded a new era of city life, one where smog and grime gave way to clear skies and clearer lungs. That fight still goes on today.

But some day, we will turn our attention to our clogged-up airwaves. The decibels will fall. #Twitter will give way to twitter. And every now and again, as we step from our homes into city life, we may just hear the sweetest sound of all. Silence.

Adam Swersky is a councillor in Harrow and is cabinet member for finance. He writes in a personal capacity.