UK Government Proposes Expanded HMRC Powers to Address Tax Avoidance

Chancellor Rachel Reeves introduces measures to access savers' financial data and reform cash Isas, sparking concerns over privacy and fairness.

The UK government is consulting on proposals to grant HMRC greater access to savers' financial data, including National Insurance numbers, to improve tax compliance.
Proposed reforms to cash Isas include potentially reducing the annual tax-free allowance from £20,000 to encourage retail investment in equities.
Critics, including privacy advocates and financial experts, warn the measures could lead to excessive government surveillance and data misuse.
HMRC defends the proposals, stating they would simplify tax compliance for savers and help fund essential public services.
The measures are part of a broader fiscal strategy to address rising borrowing costs and frozen tax thresholds without direct tax increases.