CPS to crack down on tax evasion

A populist move, which may be less popular than expected.

The head of the Crown Prosecution Service, Keir Starmer, has told the Financial Times that he is planning to increase fivefold the number of tax evasion cases the organisation takes on. Caroline Bingham writes:

Tax consultants who push dishonest avoidance schemes – and the professionals who invest in them – are central targets in the strategy. 

“There have been some cases involving lawyers, some involving tax consultants, and plumbers,” Mr Starmer said in an interview. “Within the ramped-up volume, it’s intended that we will select cases to send a clear message as to the breadth of our coverage.”

The FT reports that there were just 200 convictions secured in 2010, even with a conviction rate of 86 per cent. We can infer from those figures that the CPS only takes on cases where it has a very strong expectation of success, which is a different operating procedure from most other crimes which it prosecutes.

The tough stance of the CPS is matched by an equivalent stance from HMRC as both organisations try to crack down on the estimated £14bn a year lost to evasion.

Part of the plan is to explicitly pick cases which are harder to prosecute to make it clear that any type of tax evasion — not just the easy-to-prove cases — may be subject to prosecution. In addition, the CPS will apparently be prosecuting "everyday" tax evasion — that is, rather than just going after the most egregious offenders, it will prosecute people who match the typical profile of a tax evader. Starmer told the FT:

There have been some cases involving lawyers, some involving tax consultants, and plumbers. Within the ramped-up volume, it’s intended that we will select cases to send a clear message as to the breadth of our coverage.

The news is undoubtedly a success of sorts for campaigning groups like UKUncut, which has focused on tax evasion and avoidance and a source of missing income for the nation since 2010. There is now crystal-clear acceptance on the part of some of the most conservative institutions in government that it is unacceptable to be cutting public services while not putting as much effort as possible into securing revenue.

But the way the CPS intends to go about this new policy may be a double-edged sword. UKUncut has historically focused on the biggest individual cases, like Vodafone, which it alleges avoided £6bn in tax, or Topshop owner Philip Green, who the group claims avoided £285m.

The CPS plans to go after the exact opposite. Those hit will likely be self-employed people failing to declare all their income, as well as those more explicitly evading tax. It is harder to frame such a crackdown as the rich stealing from the poor given at least some of those evaders will themselves be earning little.

That's not to say that the CPS isn't pursuing a progressive strategy in implementing its new prosecution plan. But it may turn out being less populist than it, or the protest groups who have pushed for it, planned.

Keir Starmer. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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How the row over Jackie Walker triggered a full-blown war in Momentum

Jon Lansman, the organisation's founder, is coming under attack. 

The battle for control within Momentum, which has been brewing for some time, has begun in earnest.

In a sign of the growing unrest within the organisation – established as the continuation of Jeremy Corbyn’s first successful leadership bid, and instrumental in delivering in his re-election -  a critical pamphlet by the Alliance for Workers’ Liberty (AWL), a Trotskyite grouping, has made its way into the pages of the Times, with the “unelected” chiefs of Momentum slated for turning the organisation into a “bland blur”.

The issue of contention: between those who see Momentum as an organisation to engage new members of the Labour party, who have been motivated by Jeremy Corbyn but are not yet Corbynites.

One trade unionist from that tendency described what they see the problem as like this: “you have people who have joined to vote for Jeremy, they’re going to meetings, but they’re voting for the Progress candidates in selections, they’re voting for Eddie Izzard [who stood as an independent but Corbynsceptic candidate] in the NEC”.  

On the other are those who see a fightback by Labour’s right and centre as inevitable, and who are trying to actively create a party within a party for what they see as an inevitable purge. One activist of that opinion wryly described Momentum as “Noah’s Ark”.

For both sides, Momentum, now financially stable thanks to its membership, which now stands at over 20,000, is a great prize. And in the firing line for those who want to turn Momentum into a parallel line is Jon Lansman, the organisation’s founder.

Lansman, who came into politics as an aide to Tony Benn, is a figure of suspicion on parts of the broad left due to his decades-long commitment to the Labour party. His major opposition within Momentum and on its ruling executive comes from the AWL.

The removal of Jackie Walker as a vice-chair of Momentum after she said that Holocaust Memorial Day belittled victims of other genocides has boosted the AWL, although the AWL's Jill Mountford, who sits on Momentum's ruling executive, voted to remove Walker as vice-chair. (Walker remains on the NEC, as she has been elected by members). But despite that, the AWL, who have been critical of the process whereby Walker lost her post, have felt the benefit across the country.

Why? Because that battle has triggered a series of serious splits, not only in Momentum’s executive but its grassroots. A raft of local groups have thrown out the local leadership, mostly veterans of Corbyn’s campaign for the leadership, for what the friend of one defeated representative described as “people who believe the Canary [a pro-Corbyn politics website that is regularly accused of indulging and promoting conspiracy theories]”.

In a further series of reverses for the Lansmanite caucus, the North West, a Momentum stronghold since the organisation was founded just under a year ago, is slipping away from old allies of Lansman and towards the “new” left. As one insider put it, the transition is from longstanding members towards people who had been kicked out in the late 1980s and early 1990s by Neil Kinnock. The constituency party of Wallasey in particular is giving senior figures in Momentum headaches just as it is their opponents on the right of the party, with one lamenting that they have “lost control” of the group.

It now means that planned changes to Momentum’s structure, which the leadership had hoped to be rubberstamped by members, now face a fraught path to passage.

Adding to the organisation’s difficulties is the expected capture of James Schneider by the leader’s office. Schneider, who appears widely on television and radio as the public face of Momentum and is well-liked by journalists, has an offer on the table to join Jeremy Corbyn’s team at Westminster as a junior to Seumas Milne.

The move, while a coup for Corbyn, is one that Momentum – and some of Corbyn’s allies in the trade union movement – are keen to resist. Taking a job in the leader’s office would reduce still further the numbers of TV-friendly loyalists who can go on the airwaves and defend the leadership. There is frustration among the leader’s office that as well as Diane Abbott and John McDonnell, who are both considered to be both polished media performers and loyalists, TV bookers turn to Ken Livingstone, who is retired and unreliable, and Paul Mason, about whom opinions are divided within Momentum. Some regard Mason as a box office performer who needs a bigger role, others as a liability.

But all are agreed that Schneider’s expected departure will weaken the media presence of Corbyn loyalists and also damage Momentum. Schneider has spent much of his time not wrangling journalists but mediating in local branches and is regarded as instrumental in the places “where Momentum is working well” in the words of one trade unionist. (Cornwall is regarded as a particular example of what the organisation should be aiming towards)

It comes at a time when Momentum’s leadership is keen to focus both on its external campaigns but the struggle for control in the Labour party. Although Corbyn has never been stronger within the party, no Corbynite candidate has yet prevailed in a by-election, with the lack of available candidates at a council level regarded as part of the problem. Councilors face mandatory reselection as a matter of course, and the hope is that a bumper crop of pro-Corbyn local politicians will go on to form the bulk of the talent pool for vacant seats in future by-elections and in marginal seats at the general election.

But at present, a draining internal battle is sapping Momentum of much of its vitality. But Lansman retains two trump cards. The first is that as well as being the founder of the organisation, he is its de facto owner: the data from Jeremy Corbyn’s leadership campaigns, without which much of the organisation could not properly run, is owned by a limited company of which he is sole director. But “rolling it up and starting again” is very much the nuclear option, that would further delay the left’s hopes of consolidating its power base in the party.

The second trump card, however, is the tribalism of many of the key players at a local level, who will resist infiltration by groups to Labour’s left just as fiercely as many on the right. As one veteran of both Corbyn’s campaigns reflected: “If those who have spent 20 years attacking our party think they have waiting allies in the left of Labour, they are woefully mistaken”. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.