It was interesting following the latest news last night on the missing computer records which HMRC sent unrecorded delivery on two CDs with only password protection that can be easily broken.

HMRC confirmed last night that the data was not encrypted in any way?

Pressure on Alistair Darling to resign following the resignation of Paul Grey now ex Chairman of HM Revenue & Customs?

Mr Grey clearly has an accute sense of leadership and responsibility as although not directly responsible for the error never the less he resigned.

Mr Darling has been Chancellor of the Exchequer since 27 June 2007. Thats around five months. Gordon Brown however was Chancellor of the Exchequer from 2 May 1997 to 27 June 2007 which is over 10 years. Having had plenty of time and exercised his authority over HM Revenue & Customs over such as long period, which is effectively put in place the systems and arrangements that led to this catastrophy surely it should be Gordon Brown doing the honorable thing and resigning?

Politicians these days just don't seem to be able to be honest, responsible or honourable. Will we see Mr Brown's resignation? A newpaper article yesterday likened Mr Brown to Mr Nixon the previous US President. A control freak, arrogant and unable to see outside his own little world and box. So on that basis it is probably unlikely we will see Gordon Brown do the honourable thing as Mr Grey has.

The last Chairman of HMRC resigned around two years ago over issues to do with fraud on Benefits and Tax Credits. Who was the Chancellor of the Exchequer at that time? Gordon Brown of course.

What about the Data Controller responsible for HMRC have they resigned, the immediate line of management responsible for the "junior" member of HMRC who posted the data. There must have been instruction all the way down the long chain of management in HMRC? Will we ever hear? I doubt it.

HMRC has confirmed now that 41 laptops have been mislaid or stolen in the last twelve months, or that is the number they have admitted to.

Around half the Citizens of the UK's bank and personal details have been lost by a key Government Department so recklessly (HMRC) and Mr Grey is the only individual that has resigned? It is simply amazing.

On BBC Newsnight last night a professor on the team who has advised Government over the last few years about data security issues confirmed Government has already been warned this was a disaster waiting to happen. Government had been advised on numberous occassions and in numberous reports of the dangers and pitfalls in the data security issues. Yet apparently Government repeatedly ignored the advice they were being given.

Frankly there is no point in fining HMRC for the errors under the Data Protection Act as the very taxpayers who have had there personal details exposed by HMRC will effectively pay the fine. So what is the punishment?  Data Protection offences are a criminal offence. If HMRC is to learn its lesson then presumably the only punishment available is Criminal Prosecution. As Chancellor for the last 10 years presumably Gordon Brown should be questioned and held to answer publically exactly what advice he was ultimately responsible for ignoring over the last 10 years about data security?

This is sadly very unlikely to be the last data security breach by either HMRC or other public departments.

Can Mr Darling sort this out? Personally I doubt it based on his first Pre Budget speech? Poorly conceived tax reform seems which seem to be a shot from the hip are the name of the game with Mr Darling. He is already back tracking as clearly on reflection he realises excactly this following announcements since the Pre Budget speech.

Over the last few years it has become clear, and particularly in the latest Pre Budget speech that Government does not like small businesses which are the foundation of our community in many ways. There are little incentives to run a business these days but plenty of red tape and fines and penalties and it gets worse year on year. Businesses collect PAYE and VAT for HM Revenue & Customs as unpaid collectors. They also pay Corporation Tax or Income tax and National Insurance on their profits. Businesses create employment which leads to more taxes being paid and a reduced burden on the state in benefit terms and the like.  Yet time and again, year on year the Government and indeed HM Revenue & Customs attack business, particularly small to medium sized businesses. I have seen it numberous times every week as a practicing Chartered Tax Adviser. After 20 years in practice it is for sure the worst it has ever been and if I am honest I only see it getting worse as I cannot see any signs of any changes that will improve.

While we are on this subject what exactly is the difference between Tax and National Insurance? Surely it is just then easlier to say the basic rate of "tax" is 22% which in worldwide terms is quite low. As National Insurance and tax is nearer 30% (and that ignores Employers NIC at 12.8%!) and if you add the VAT you pay then your annual overall tax rate is likely to be over 30%. A other "taxes" like fuel duty and various other "duties" which are all effectly taxes and many of the population pay in excess of 50% of what they earn in tax. Add Inheritance Tax, Stamp Duty, Car Tax and you surely just start to wonder where it all goes?

The government or course need a lots of taxes. Lending £30 Billion (some reports say this could increase to over £40Billion) to Northern Rock (and presumably similar sums the next few banks to "go" under the credit crunch) is partly what they are going to need your taxes for. Much of this may never be recovered. Presumably tax will have to now rise to pay for the Governments economical failings and misjudgments.

These days I rarely see any respect shown towards taxpayers by HM Revenue & Customs (or Government) but this is really a reflection on the Treasury and the way the Exchequer (Gordon Brown) has run HM Revenue & Customs for the last decade.

There is no doubt more bad news to come over the next year or two. Northern Rock seems to be in much worse problems that first thought, Paragon now has similar problems and if anyone seriously thinks these will be the last of the banks to be hit severely by the credit crunch and fundamental economical problems we are now seeing frankly they just have their fingers crossed or head in the sand.

This again comes back to Gordon Brown. As Chancellor of the Exchequer for 10 years when we now see the legacy he has really left is he really fit to be Prime Minister?

The pensions system has been wrecked in the last 10 years. There are record levels of borrowing and repossessions are rising fast. Credit cards debts are now at their highest. And we have not yet even seen particularly high rises in interest rates. What would happen if interest rates went up 2% which would still historically be low interest rates? Are we seriously saying that interest rates will never be 8% plus ever again? Or that by the time they are borrowing will be much lower or wages much higher?

Is there not at some point the biggest economical social disaster in the last 100 years or more inevitable? And who has been in charge of the economy for the last ten years during which the majority of the increases debt has arisen? It all comes back to Gordon Brown's door. No wonder he sat quitely in the House of Commons yesterday while Alistair Darling had to apologise to the Nation for the incompetence over a major Government department giving rise to a ludicrous major security breach of massive proportions. 

Sadly it is the "feel good" factor that politicians crave and love so much. It is why the economy is fickle. It is like politicians basically. Serious planning and forward thinking is relegated to second place. Increased debt leads to "assets" though not in real terms as the debts largely cancel out the assets. Credit cards debts particularly usually incurred to buy depreciating assets usually and luxuries like holidays? Of course this is not Governments responsibility?

It might have been wise for Gordon Brown to have called a snap election aready as sadly the news over the next few years at least, both Governmental and economical, is not really showing any signs of improving.