Our letter to the Chancellor: Don’t leave billions lost to illicit finance and tax-related crimes on the table
FOR IMMEDIATE RELEASE
Thursday 6 November 2025 – Following her speech on Tuesday, and ahead of the November 26 budget, members of the Illicit Finance Working Group have written to Chancellor Rachel Reeves urging her to implement measures that would fill her fiscal black hole, prioritise long-term growth and security, and raise living standards.
Amidst intense speculation about the options Reeves has to fill her £20bn “black hole”, the members laid out three overlooked steps that the Chancellor could take to raise revenue, safeguard the integrity of our markets, and provide long-term growth. This follows a warning from Phil Brickell MP that the Treasury is being “starved” of vital funding by the offshore financial secrecy in our Overseas Territories. During a Westminster Hall debate yesterday, Sir Andrew Mitchell MP also claimed that “billions would flow in” to the Treasury should the Chancellor act on recommendations laid out by the APPG on Anti-Corruption and Responsible Tax.
Yuan Yang MP, member of the Treasury Select Committee, said:
Economic crime, tax evasion and corruption are draining £290 billion from our economy each year, which is the same as our entire education and health budgets combined. This isn't just a law-enforcement problem, as it has a significant impact on the real economy by damaging the Treasury's ability to properly invest.
At a time when the Treasury faces tough choices, closing tax loopholes and reforming poorly targeted reliefs could help fill the black hole in public finances and restore trust in the government's economic approach. If we want a fair, efficient tax system, capable of funding the investment our economy needs, reform to these loopholes is essential.
In light of this, members of the UK Anti-Corruption Coalition are calling on the government to do the following.
Strengthening HMRC capacity to ensure it can properly measure and collect the taxes owed by the super wealthy, investigate complex cross-border cases and tackle the UK’s dirty money problem.
Backing our law enforcement with greater funding to enable long-term, sustainable funding and the reinvestment gains into the agencies.
Committing to the UN Framework Convention on International Tax Cooperation to ensure a fair and consistent approach to tackling illicit financial flows.