Former top Treasury adviser warns that HMRC plans to track personal finances with AI

July 4, 2026 - 23:19

A former senior economic adviser to the Treasury has raised serious concerns over plans by HM Revenue and Customs to use artificial intelligence to monitor people's personal finances. Dr Chris Wales, who served on Gordon Brown's Council of Economic Advisers for more than six years, warned that the technology could be used to track individuals' income and spending without their knowledge or consent.

Speaking out against the proposed system, Dr Wales argued that the move represents a significant shift in the relationship between the state and its citizens. He cautioned that AI-driven surveillance of bank accounts, transactions, and spending patterns could lead to intrusive monitoring that goes far beyond legitimate tax collection. The system would allow HMRC to build detailed financial profiles of millions of people, flagging unusual activity or discrepancies in reported income.

Dr Wales stressed that while technology can improve tax compliance, the lack of transparency around how the AI would operate is deeply troubling. He called for a public debate on the ethical boundaries of such surveillance, warning that without proper safeguards, the system could erode trust and create a culture of suspicion. The former adviser urged policymakers to consider the long-term implications before rolling out a program that could fundamentally alter the privacy landscape for everyone in the UK.