Controlling the Hidden Economy

In recent months newspapers have been full of stories about the “hidden”, “black” or “cash” economy. “Fiddlers on the tubes” told how London Transport ticket barrier staff were allegedly pocketing nearly £5.5 million they collect in excess fares every year. “Moonlighters in Fleet Street” described the clampdown by tax inspectors on part‐time casual workers who collect undeclared wages from more than one newspaper office by signing fictitious names, such as “Mickey Mouse”. Sir William Pile, Chairman of the Board of Inland Revenue was reported by The Guardian as estimating that “the black economy of tax avoidance and moonlighting” amounted to 7.5 per cent of the entire economy at around £11 billions.