Thousands of families face ‘endless nightmare’ over borrowing costs, Treasury says
The Loan Charge Action Group (LCAG) has written to the two senior Treasury ministers who will be responsible for the loan charge in the revamped government under new Prime Minister Liz Truss.
The LCAG letters urge the two ministers to ‘stand by their convictions’ and agree to review and resolve the loan charges and work with campaigners and industry professionals to do so. Borrowing Charge was designed to combat tax avoidance schemes where individuals receive income in the form of loans that are not repaid to avoid income tax. Critics believe the loan fee is a flawed and punitive policy. Opponents of the loan charge have included the Reverend Richard Coles, the broadcaster and retired priest, who has called on Conservative leadership candidates to find a solution to the loan charge as an urgent priority ‘before d ‘other families are destroyed’.
A spokesman for the action group said: ‘New Treasury Finance Secretary Andrew Griffith and Treasury Economics Secretary Richard Fuller have expressed concern about borrowing costs and the HMRC’s approach to people who experience it. Mr Griffith was an active member of the all-party Parliamentary Loan Fees and Taxpayer Fairness Group (APPG) and in a parliamentary debate called for an amnesty for loan victims.
Loan Charge Action Group spokesman Steve Packham said: “We are heartened to finally have Treasury ministers who have spoken out against the dangerous loan charge and criticized the way HMRC has behaved.
“We urge Andrew Griffiths and Richard Fuller to have the courage of their convictions and to take action to investigate and resolve the entire loan fee scandal.
“We also hope, to quote Treasury Economic Secretary Richard Fuller, that we will now see Treasury ministers ‘running the show’, not HMRC.”
Mr Packham added: ‘We hope we can now engage with the Treasury to find a way out of the endless nightmare for thousands of British families and also a way to enable the government to move forward and focus on the cost-of-living and economic crisis, to which the self-employed, entrepreneurs and business leaders make a huge contribution.
New Prime Minister Liz Truss was quizzed on her stance on the loan fee at an event hosted by Croydon Tories. re-examine” and resolve this issue before more people commit suicide. do on this specific issue.
The Treasury declined to comment in response to the LCAG letter.