Loan charge: Raising concerns about victims' 'torment' isn't scaremongering, Minister: Greg Wright

To quote Mr Farron: “The original Treasury impact statement for the loan charge stated that it would have no material impact on “family formation, stability or breakdown”, yet there have been countless divorces, family break-ups, mental health breakdowns and bankruptcies, and at least 10 suicides.

“That impact statement was grossly wrong, but also surely negligent. We now need a full investigation, including how and why Parliament was so misled over the dangerous and unfair loan charge.”

In reply, Treasury minister Nigel Huddleston said “of course, the suicides ..concern us, and independent reviews have taken place”.

He continued: “However, I want to provide the House and anybody listening with reassurance that the best thing to do if people have concerns is to engage with HMRC, because very generous and long-term plans can be put in place to help people to repay.

"As I said, there are fears out there—there is a bit of scaremongering—that homes are being taken over or people are having to give up pensions. That is not the case. Engagement with HMRC to establish reasonable time to pay would therefore be reassuring for many of the people who fear much worse consequences. My appeal is to engage with HMRC.”

But can the MPs’ concerns about the loan charge really be dismissed as “scaremongering”? Shadow Treasury minister James Murray was speaking for many when he said the Government’s approach to the loan charge has become a nightmare for ordinary people across the country, who are the victims of mis-selling and facing financial ruin.

“The torment and devastating reality is the clearest possible proof that the Government needs to think again."

I receive further evidence of this “torment” on an almost weekly basis. A man affected by the loan charge told me: "I can safely say being embroiled in this fiasco has ruined my life. The doctors prescribed several sources of medication to assist with how angry I feel. I broke down when explaining to the doctor what was happening." Is this scaremongering, Mr Huddleston?

The man said he had “categoric proof” a chartered accountant strongly advised him to participate in the HMRC registered scheme. It’s a story I’ve heard so many times. Thousands of law-abiding people acted on advice from professionally accredited advisers in order to honour their responsibilities as taxpayers. Now many are facing ruin. Some are haunted by suicidal thoughts.

Mr Huddleston told MPs he is “challenging HMRC” and listening to colleagues. It would be interesting to know how precisely this commitment to “challenging HMRC” is manifesting itself.

Greg Wright is deputy business editor of The Yorkshire Post