The UK Government has been accused of "encouraging" tax avoidance.

The MPs, who have formed an all-party group on responsible taxation, made the accusation in a report into the government's record and the country's taxation system.

Dame Margaret Hodge, who chairs the group, called on new Prime Minister Theresa May to improve on her predecessor David Cameron's record.

She said: "The government has been facing both ways.

"While publicly proclaiming their determination to tackle global tax avoidance, they have been encouraging these practices by changes they have made to the UK tax system and by refusing privately to agree to some key OECD proposals.

"Their unwillingness to get tough on our overseas territories and crown dependencies, home to a number of tax havens, by forcing them to introduce public registers of beneficial ownership is frustrating.

"The new Prime Minister must put an end to tax secrecy. The UK Government should take a leading role and introduce public country-by-country reporting.

"The UK Government should use the law to end the secrecy that encompasses tax havens."

A Treasury spokesman defended its record on closing taxation loopholes.

He said: "The anti-corruption summit we held in May saw global agreement to automatically share information on who really owns companies and trusts and, because of our leadership, HMRC will be begin receiving information on the accounts held in the crown dependencies and overseas territories by UK taxpayers one year earlier than the rest of the world.

"These are concrete measures that will help us clamp down on tax-dodging and illicit finance."

British crown dependencies and overseas territories do not currently follow the same tax rules as the UK .