Tax and recovery: Beyond the binary
Article
Even before the pandemic struck, the UK tax system was in serious need of reform. It is inefficient, unfairly taxes labour more than capital, exacerbates inequality, and fails to shape the economy in a sustainable way.
The briefing shows that alongside a major stimulus, reforming and raising certain taxes now could ensure the recovery is more balanced, more sustainable and prevents inequality from escalating further. Indeed, such a package would have a large positive effect on the recovery. This does not preclude a discussion of further tax reform in the future. But some initial changes should start now to lay the foundation for a more prosperous and just post-pandemic recovery.
We propose four priority reforms that could take place even before the recovery has been achieved: raising capital gains and dividend tax, raising corporation tax, reforming wealth taxes and a land value tax. These could make the system significantly more balanced, raise up to £55 billion, and have only a small impact on growth during the recovery.
Related items
State of the North 2025 - The kids aren't alright: How to deliver for young people in the North
This year’s State of the North report highlights how regional inequality exacerbates the growing challenges facing many young northerners.The transport challenge for low-income households
Many people living on low incomes in the UK are limited in their ability to access the building blocks of a good life because of poor transport provision.Towards universal opportunity for young people
Outlining a vision for young people which could increase social mobility while also reducing inequality and disadvantage, so that every young person has the opportunity to build a decent life.