High spending and tax to blame for shadow economy

BBC News round-up reports on the shadow economy

Mark Littlewood discussed the IEA's publication, "The Shadow Economy" on BBC Business News round-up.

The report discovered that the UK's shadow economy accounts for almost 1/10th of GDP or more than £150bn. The publication argues that high levels of government spending and tax rises create a dangerous cycle of pushing individuals and business into illicit employment.

Listen to the full programme here. Segment begins at 7.25.