David Cameron

Prime Minister David Cameron has stressed he has "no offshore funds", after his father was revealed to have used Panamanian law firm Mossack Fonseca to shield his wealth.

Mr Cameron's father, Ian, who died in 2010, was among the hundreds of individuals and businesses included in documents leaked from Mossack Fonseca which facilitated countless tax avoidance schemes.

After Labour leader Jeremy Corbyn called on him to "set the record straight", Mr Cameron said he has "no shares, no offshore trusts, no offshore funds, nothing like that".

He said: "I have a salary as Prime Minister, and I have some savings which I get some interest from and I have a house which we used to live in which we now let out while we're living in Downing Street, and that's all I have."

With a major Anti-Corruption Summit to host in a few weeks aimed at tackling schemes just like the ones operated by Mossack Fonseca, the Prime Minister faced questions about whether or not his family still uses offshore companies. But a Downing Street spokesperson claimed it is a "private matter".

'Stop pussyfooting around'

Jeremy Corbyn told the government to "stop pussyfooting around" on tax avoidance. His calls come after more than 100,000 of the companies included in the 11 million documents leaked from Mossack Fonseca were listed in the British Virgin Islands.

He said: "I think the prime minister, in his own interest, should tell us exactly what's been going on.

"It's a private matter in so far as it's a privately held interest, but it's not a private matter if tax has not been paid.

"So an investigation must take place, an independent investigation."

At the launch of Labour's local government campaign, Mr Corbyn said: "It is time to get tough on tax havens. Britain has a huge responsibility. Many of those tax havens are British overseas territories or Crown dependencies.

"As the leaked documents show, tax havens have become honey pots of international corruption, tax avoidance and evasion.

"They are sucking tax revenues out of our own country and many others fuelling inequality and short-changing our public services and our people.

"There cannot be one set of tax rules for the wealthy elite and another for the rest of us."

Former business secretary Vince Cable told the BBC that the UK government could take territories like the British Virgin Islands under direct control to tackle corruption and tax avoidance.

He said: "We do have some powers. We can't send gunboats these days but we can take the small territories under direct rule."

In 2009, the British government took direct rule over the Turks and Caicos Islands after the ruling elite were involved in widespread corruption. Direct rule lasted for three years, until the Island implemented new rules to crackdown on tax avoidance and corruption.