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Energy firms 'avoiding tax'

Power giants are using a legal loophole to avoid paying millions of pounds worth of tax, The Independent on Sunday has revealed. Scotia Gas, UK Power Networks and Electricity Northwest have reportedly saved £140 million between them in such deals.

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Cameron 'needs to explain why loophole wasn't closed'

Labour's shadow chief secretary to the Treasury, Chris Leslie, said David Cameron needs to explain why he decided not to close down the tax loophole "which we now know some energy companies are using to avoid millions in tax."

It's not good enough for Danny Alexander to simply say he is angry about companies exploiting loopholes. As the Chief Secretary to the Treasury he should be acting to close them down.

While families and pensioners are struggling with soaring energy bills, it's now clear this Government is not on their side, but on the side of the energy companies instead. At a time when families face a cost of living crisis and the deficit is still high, we need a Government that's going to take tax avoidance seriously.

– Chris Leslie, Labour's shadow chief secretary to the Treasury

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