Holding the Treasury to Account

A Question of Accountability

Rupert Lowe, never one to shy away from uncomfortable truths, recently pressed the Treasury’s most senior officials on a matter that should concern every taxpayer: why are public sector bodies allowed to squander billions without repercussion, while small businesses face relentless scrutiny and punishment from HMRC? It’s a question that deserves more than a perfunctory response, especially in an era when government spending seems to come with neither transparency nor consequence.

Double Standards on Display

Let’s lay out the facts. Public sector organisations routinely produce eye-watering reports of wasted expenditure — failed IT projects, procurement fiascos, and “unforeseen” overspends. How often are those responsible held to account? Rarely, if ever. Civil servants and public bodies seem to operate under a different set of rules. When mistakes are made, the response is an internal review, not a penalty.

Contrast this with the experience of small businesses across the UK:

• Aggressive enforcement: HMRC pursues small businesses with almost missionary zeal. Miss a tax deadline by a day? Prepare for fines and threats of legal action.

• Disproportionate penalties: Minor clerical errors can trigger audits, penalties, and a mountain of paperwork.

• Relentless pressure: The very enterprises that fund the state with their taxes are treated as suspects, not partners.

As Lowe pointed out, small businesses “fund the whole bloody thing.” Yet, they are the first to be targeted when the government is desperate to plug the holes in its own finances. Because, of course, that always works out perfectly… not.

HMRC’s Own Failings

The hypocrisy is even more galling when you consider HMRC’s own record keeping. When HMRC reports missing or incomplete data on the tax returns of its own entities, what happens? Nothing. Unlike small business owners, HMRC is not threatened with fines, nor are officials dragged before tribunals.

Consider this:

Such double standards are not just unfair; they undermine confidence in the entire system. How can the government expect respect for the rules when it so blatantly exempts itself and its agencies from those same rules?

Justifying the Unjustifiable

The Treasury’s response, predictably, is to mumble about the “complexity” of public sector operations or the “unique challenges” faced by government departments. It’s a tired refrain — one that conveniently forgets that complexity is no excuse for incompetence, and unique challenges do not absolve anyone from responsibility.

Let’s not pretend this is accidental. The aggressive treatment of small businesses is a policy choice, not an inevitability. Meanwhile, civil servants continue to enjoy a culture of impunity, secure in the knowledge that mistakes with public money are rarely career-ending.

The Way Forward

For the system to regain credibility, public sector bodies must be held to the same, if not higher, standards as the private sector. At a minimum, this means:

• Transparent reporting of wasted funds

• Genuine financial penalties for severe mismanagement

• Independent oversight of public sector accounting

• An end to the special treatment enjoyed by HMRC and its peers

Until these changes are made, small businesses will continue to carry the burden of a system that is rigged against them. And the public’s cynicism — entirely justified — will only deepen.

Next Steps for Contractors

UK contractors, often caught in the crossfire, should demand clearer accountability from the government. Engage with trade associations, contact your MP, and support calls for reform. The rules must be fair, or they are not rules at all.

Because when the state punishes the productive and excuses the wasteful, it is not just unfair — it is unsustainable.

Watch this video of Rupert Lowe talking about the above and questioning HMRC https://www.facebook.com/reel/2077182469684320