IF there has been one national issue which has dominated my postbag more than any other this month it has been tax avoidance. People all over Islwyn have written to me expressing their shock and anger at allegations, HSBC helped their clients dramatically reduce the amount of tax they pay.

The reason for this is simple. People and organisations who deliberately try and avoid paying their fair taxes are stealing directly from our front-line public services.

Is there any wonder why the people who wrote to me are angry? Week in, week out, they pay their taxes, worry about their household bills and stretch their wages as far as they can to pay for necessities, while those who have means are using all sorts of loopholes to get away without paying their taxes.

Avoiding tax is a moral issue and has a direct effect on our economy as the amount that government takes in tax will inevitably fall, meaning massive cuts.

So, the next time we hear of a shortage of nurses in Gwent or of cut-backs in teachers or firefighters across Islwyn, or a home-care for the elderly closing, much of the blame can be laid at the door of the tax dodger.

In these tough economic times, it falls on the government to step up to the plate on behalf of everyone who is being ripped off by tax avoiders. Sadly, the Coalition Government has failed to adequately address this serious issue.

The latest figures published show that the difference between how much taxes should be collected and how much actually is collected has been rising under the Coalition Government. Public services are now being deprived of £34 billion in revenue through this government’s inability to deal with tax avoidance.

It is crucial that everyone pays their fair share of tax and makes a financial contribution to public services, especially in these hard times when public services budgets are stretched. Equally we cannot allow a situation where the mega-wealthy are seen to twist and abuse the tax rules to avoid paying their share. Just as you and I are expected to pay our taxes, so should everyone else.

There is now an urgent need to close loopholes used for tax avoidance, increase transparency and bring in tough deterrents. Legislation is needed to clamp down on some of the most complex areas of tax avoidance to ensure that scandals like HSBC cannot happen again.