Since Sunday evening, many of the world’s elite have been worrying about their taxes, and with very good reason. The Panama Papers are the largest ever unauthorised release of confidential documents, and we have so far seen only the very tip of the iceberg in the public domain.

Cast your minds back a few years to the fallout from the Wikileaks disclosures courtesy of Bradley (now Chelsea) Manning and the disclosures about the NSA by Edward Snowden. Those revelations had a massive impact upon how we now view the world collectively and individually. Considering that five times as many documents have been disclosed within the Panama Papers than both the Wikileaks and Snowden disclosures combined, it’s clear to see how the repercussions from this leak will be felt for some time to come.

The news couldn’t have been more timely, coming as it did on the eve of the new tax year and so soon after the Chancellor’s Budget which focussed on tax cuts for big businesses and spending cuts for the most vulnerable.

The Panama Papers have so far shown the various tax-avoidance techniques used by the super-rich by setting up companies or trusts in tax havens such as the British Virgin Islands. Several leading global figures, past and present, have been identified as holding significant monies within such structures. Sigmundur Gunnlaugsson, the Icelandic Prime Minister, has already resigned, and others may have to follow suit in the coming days. In many cases, the tax avoidance methods are not illegal, but they most certainly are immoral.

This question of fairness is perhaps the greatest issue to emerge from tax scandals in recent years.

The fact that four London cabbies could pay the same amount of UK tax as Uber annually – a comparison rejected by the taxi firm – or that Starbucks went for years without paying a single penny of corporation tax is appalling, and yet the Tories have been reluctant to make any significant changes to the tax system which could prevent such things happening again.

Whilst the Tories continue to bicker and fight with each other about Brexit, the Labour Party can and should take the lead on reforming the tax system in a fair manner.

The British Virgin Islands and the Cayman Islands were the most commonly tax havens apparently used by clients of Mossack Fonseca, the firm whose papers have been leaked, and the international anomalies which allow them to exist need to be closed as soon as possible. Over £7bn in tax revenue is lost each year to tax havens, money that we in Britain could desperately use to fund our increasingly impoverished public services.

We need to thrust the international spotlight onto tax havens and force them to change their taxation systems. If naming and shaming has worked to get multinational corporates to cough up the cash, we can use the same method on nation states. Britain also needs to re-evaluate the tax treaties it has with such tax havens, making those agreements far more robust and favourable for British coffers than at present. We can also look at other diplomatic means to force through a change, including the threat of withdrawal of some British Government support for any havens which are part of the British territories.

By adopting a velvet glove approach with tax havens, we can improve the levels of tax revenues in the UK without resorting to the imposition of direct rule upon British dependencies and overseas territories. We in the Labour Party are proud to have freed many of our former colonies from the shackles of empire, and we must tread carefully before we do anything with our interests abroad which suggests the contrary.

Our approach towards tax havens should be part of a comprehensive economic package which provides strong financial support for start ups and SMEs, which acknowledges and reflects the role played by new technologies and traditional industries, and which ensures that the “living wage” which came into force less than a week ago lives up to its name rather than just being a repackaged minimum wage.

The British public is starting to doubt the economic credibility of the Conservatives, and the still-to-come disclosures from the Panama Papers will no doubt reinforce such doubts, especially whilst there are stories of senior Tories having potential conflicts of interest regarding offshore companies. These people are in charge of Britain’s economic recovery, and we can have little faith in their abilities if their families’ money is ferreted away in tax havens.

Now is the time for Labour to show that it has a policy for taxation and the economy which is fair, transparent, and benefits all in society rather than just the elite. We lead by example, not by hypocrisy, and we need to make sure that everyone is fully aware of that. However, we need to act fast and with one voice if we want to be recognised as the financial custodians of Britain’s future.

Jasvir Singh is a barrister and Labour activist