HMRC is failing to collect billions of pounds of tax it is owed each year that could have helped further fund local public services, MPs have warned.

In a report published today, the Public Accounts Committee (PAC) urged HMRC to employ more compliance staff to chase debts during the current real-terms squeeze on public spending after finding 5% of tax it is owed each year – some £42bn for 2021-23 – was not collected.