Chancellor ‘should tax loan sharks’

According to the accountants and business advisers BDO Stoy Hayward, a poll has revealed that consumers want to see usurers taxed, partly due to the debt woes they can bring.

Stephen Herring, a tax partner at the firm, stated that some kind of regulation was even more important due to the amount of bankruptcies and Individual Voluntary Arrangements (IVAs) high interest loans can drive people into.

“As personal insolvency in the UK reaches an all-time high, consumers are calling for the government to intervene and penalise those finance providers they feel are making money out of consumer debt, presumably through irresponsible lending,” stated Mr Herring.

His comments come as Gordon Brown prepares to announce his pre-Budget report that could see a shake-up of certain taxes.

Mr Herring added that he hopes that the chancellor will use the opportunity to reform certain taxes to encourage more saving and thus better debt management.