PM faces flak over G8 tax dodge call

The Prime Minister called on the bloc of rich countries to start preparing "bold steps" in the run-up to its annual summit at the Lough Erne golf resort in Co Fermanagh, Northern Ireland, this June.

In a letter marking the start of Britain's presidency of the G8 Mr Cameron said he did not want a summit where rich nations "simply whip out a chequebook at the 11th hour, pledge some money and call it a success."

He said he hoped to "galvanise collective international action" on tax evasion, including sharing information to help developing countries tackle abuses.

"The G8 can make a tangible difference by firing up economies and driving prosperity, not just in our own countries but all over the world," the PM added.

But shadow Treasury minister Catherine McKinnell pointed out that his words rang hollow given his failures at home.

"Over the last year David Cameron's policies have seen prices rise faster than wages, a flatlining economy, rising long-term unemployment and the deficit going up," said Ms McKinnell.

"And the price for this economic failure will be paid for by millions of working families who will see their tax credits cut while millionaires get their tax bill reduced this year."

She called for an urgent change of course with policies that stimulate rather than stifle economic growth and ensure that prosperity is more fairly shared.