Everyone who proposed and implemented loan charge must be held to account, say campaigners

Everyone who proposed and implemented the Loan Charge must be held to account when the Government holds a fresh review into the controversial tax policy which has been linked with 10 suicides, according to campaigners.

The Chancellor Rachel Reeves announced in the Budget that there would be a further independent review of the loan charge after MPs warned there were “frightening parallels” between the tax policy and the Horizon IT scandal, which saw more than 700 Post Office branch managers handed criminal convictions after faulty Fujitsu accounting software made it appear as though money was missing.

Steve Packham, a spokesman for the Loan Charge Action Group, told The Yorkshire Post there was a clear and pressing need for a fresh, and genuinely independent review of the whole loan charge scandal.

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He added: “As is well documented, 10 people have taken their own lives facing the Loan Charge, but it has also been a catastrophic failure as a policy.

As is well documented, 10 people have taken their own lives facing the Loan Charge, but it is also been a catastrophic failure as a policy, says Steve Packham of LCAG (Photo supplied by LCAG)As is well documented, 10 people have taken their own lives facing the Loan Charge, but it is also been a catastrophic failure as a policy, says Steve Packham of LCAG (Photo supplied by LCAG)
As is well documented, 10 people have taken their own lives facing the Loan Charge, but it is also been a catastrophic failure as a policy, says Steve Packham of LCAG (Photo supplied by LCAG)

“Ministers claimed it would put a stop to the promotion and mis-selling of what they call ‘disguised remuneration’ schemes, but it hasn’t and people, especially lower paid workers, are still being mis-sold schemes and HMRC recently reported an increase in rogue umbrella companies involved in this.

There are still over 40,000 unresolved cases some five years after the Loan Charge came into force, Mr Packham said.

He added: “Apart from the unfairness of the Loan Charge and the suicides, all those who proposed and implemented the Loan Charge must be held to account for this disastrous law.”

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“The Loan Charge Action Group is delighted that the Chancellor has stuck to her promise to commission a fresh independent review and we thank her and James Murray, Exchequer Secretary to the Treasury for that.”

“This time, the review – or better still a formal inquiry – must be genuinely independent, without HMRC and Treasury staff who were involved in the Loan Charge having any role in the remit, structure or anything else. It would be like allowing Post Office Ltd to dictate the terms of the Post Office Horizon scandal inquiry. This cannot happen and this time, there needs to be a proper investigation into the whole scandal, including the failures of HMRC and the role of promoters, umbrella companies and the whole supply chain.”

Greg Smith MP, Co-Chair, Loan Charge and Taxpayer Fairness APPG, said: “The current Post Office Scandal is on its second inquiry and is still not yet resolved, but at least the truth is being fully exposed.

“The Loan Charge Scandal must not be allowed to drift on in the same way and it is now time for the genuine Loan Charge inquiry so clearly needed, to resolve the issue for the tens of thousands of families affected and ensure such a scandal can never happen again.”

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A Government spokesperson said: “We recognise that concerns continue to be raised about the Loan Charge.

“The Government will honour its commitment to hold an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.”

Further details, including terms of reference and the lead reviewer, will be set out by the Exchequer Secretary to the Treasury in due course, the spokesman said.

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