Evening Press Leader

Every hardworking taxpayer will welcome Gordon Brown's crackdown on the black economy.

The honest majority, who hand over around a quarter of their earnings to the Treasury every pay day, resent the fact that they are subsidising the tax evaders and welfare cheats.

Today's headlines inevitably concentrate on the blitz on benefit swindlers. Stung by Tory claims that Labour is soft on welfare fraud, the Chancellor is introducing draconian measures to tackle the problem.

Anyone convicted twice of benefit fraud will lose the right to claim. Dole claimants suspected of working will be ordered to sign on more frequently and at shorter notice to make a double life more difficult.

These measures are aimed at stopping individuals who are systematically abusing the welfare system. It is crucial that they are targeted precisely; genuine claimants must not be hounded. People must not be made to feel ashamed for claiming benefits to which they are entitled.

Moreover, benefit fraud is only a small slice of the hidden economy. In his report, Lord Grabiner was unable to put a figure on the size of the black market; the best he could do was suggest it involved "billions of pounds". Of that, £450 million goes to claimants who sign on while working.

Much of the remaining billions is made up of tax evasion. Examples include firms who were not registered with any government agency and undeclared profits from known businesses.

Again, Mr Brown is ready to tackle individual tax dodgers. The Inland Revenue will get new powers to track down those who run a business from home without paying tax. And Lord Grabiner has called for stricter checks on birth certificates to prevent people building false identities.

But the Chancellor's crackdown seemingly ignores large-scale, corporate fraud, which helps the rich to get richer. Until that is tackled, the hidden economy will continue to flourish.

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