PM is now carefully back-pedalling after an ongoing investigation by The Times revealed that thousands of people, including musicians, footballers, dentists, doctors and bankers, are engaged in similar behaviour.

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Do you want to pay less tax? It's totally legal. For the vast majority of people (Warren Buffett excluded), the honest answer is likely to be "yes".  That is the question a financial adviser apparently asked comedian Jimmy Carr, who this week was crucified in the press and forced to apologise over Twitter for investing money in an offshore "tax-shelter" scheme. David Cameron promptly described Carr's actions as "morally wrong" - but the PM is now carefully back-pedalling after an ongoing investigation by The Times revealed that thousands of people, including musicians, footballers, dentists, doctors and bankers, are engaged in similar behaviour. According to the outspoken Cameron, Britain is full of very bad people" - even if this does embarrassingly include a number of high-profile Conservatives and their families.

The Prime Minister will rue his hasty reaction. The coalition is now stuck in a rut - does the Treasury condemn and crack down on all offenders, to stick with George Osborne's staunch anti-avoidance stance? Or does it accept that the system is flawed and needs drastic overhaul? Cameron faces an important question: how can the government convincingly make the strongest case for taxation (better, fairer public services) while simultaneously cutting those services and dealing the ensuing strikes in those systems? Don't answer too quickly, Prime Minister - that doesn't tend to go down too well.