Tories challenge Ed Balls over 'receipts for cash-in-hand jobs' comments

Ed Balls said he has kept receipts for everything since he has been in politics. Credit: PA

Ed Balls' suggestion that people have a duty to collect receipts from gardeners and cleaners for the smallest cash-in-hand jobs shows Labour has a "complete lack of understanding" about business, a Cabinet minister has said.

The shadow chancellor said he always demanded a written record, even if it was merely for £10 to trim a hedge, because it was the "right thing to do".

But Work and Pensions Secretary Iain Duncan Smith said it was "absurd" and showed that Labour did not know how businesses worked.

Shadow business secretary Chuka Umunna dismissed the row as "a storm in a teacup" and insisted Mr Balls was not suggesting that everyone had an obligation to follow his lead by demanding receipts for minor cash-in-hand jobs.

Mr Umunna told Sky News:

Asked whether David Cameron always requests a receipt for cash-in-hand jobs, a Downing Street spokeswoman said:

Iain Duncan Smith was critical of Ed Balls' comments on receipts. Credit: PA

The shadow chancellor's comments came as Labour and the Tories engaged in furious clashes over tax dodging.

As he was pressed on BBC Radio 5 Live's Pienaar's Politics about what constituted tax avoidance, Mr Balls said:

More: Miliband unveils apprenticeships pledge ahead of election