Treasury minister: paying cash in hand is 'morally wrong'

Government estimates put the amount of VAT and income tax revenue lost to the black economy each year at more than £2bn. Gauke told the BBC's Newsnight: "When a tradesman says: ‘Here's a 10%, a 20% discount on your bill if you pay me cash in hand' that is facilitating the hidden economy. "That's as big a problem in terms of loss to the Exchequer as tax avoidance. Revenue is not being paid as it should be paid." He added: "Getting a discount with your plumber by paying cash in hand is something that is a big cost to the revenue and means others have to pay more in tax. "I think i...