The Treasury Select Committee has said “great uncertainty” hangs over government forecasts for the amount of money it can claw back by closing tax loopholes.

The BBC News website reported that the Committee is sceptical about drawing up projections when tax budgets are formulated.

Drawing conclusions from last year’s Autumn Statement, it said many projections from previous schemes had been revised down significantly.

In the Autumn Statement, delivered in December, chancellor George Osborne said the government could recoup £6.8 billion by stamping down on tax avoidance and fraud.

"Given the great uncertainty that surrounds the fiscal effects of tax avoidance measures, the reduction in the estimated yield of the UK-Swiss tax agreement should not be a great surprise," the committee report stated.