THE TREASURY has become increasingly angry with the "grandstanding" indulged in by Labour MP Margaret Hodge and her colleagues in the Public Accounts Committee.
The abrasive and accusative tone the committee's hearings take is "having an impact" on foreign investment in the UK, a source at the Treasury told the BBC.
Hodge insisted the claims are "completely fallacious" and said officials should "have the guts" to make their criticisms to her personally.
Hodge has regularly hit the headlines with her forthright attacks on corporations' tax affairs. She branded Google "evil" for its tax regime, and has also censured Starbucks and Amazon for their tax structures.
HM Revenue & Customs has also found itself in her crosshairs for its perceived weakness in dealing with multinational companies.
"Companies looking at Britain are being put off the idea of moving their headquarters here because they fear the level of public exposure for behaving perfectly legally," the Treasury source told the BBC.
"We are trying to show we have one of the most competitive corporate tax regimes in the world, but the message is being sent out if you come here you will be exposed to this sort of criticism from Margaret Hodge and her committee.
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