The House of Lords has said the UK faces losing “much-needed revenue” to multinationals whose tax affairs are under the microscope.

The Lords’ economic affairs select committee recommended increasing funding for HM Revenue & Customs in order to tackle well-funded corporations, The Guardian reported.

The Organisation for Economic Co-operation and Development (OECD) has proposed reforms to the global tax system however the committee warned that reforms may not be enough to stop tax avoidance by multinationals.

The committee has proposed that politicians be allowed to take private testimonies from HMRC officials on tax agreements with businesses.

The committee report published today said: “It is not yet clear how effective the proposed solutions will be or whether they can be achieved within the [two-year] timescale. In the meantime, the UK faces the prospect of losing much-needed revenue.”