The IFS is calling on Reeves to reform the UK tax system.

crypthub

1 day ago

Tax Reform Recommendations

The Institute for Fiscal Studies (IFS) advises Chancellor Rachel Reeves to use the upcoming November budget for significant tax system changes. They emphasize the need for sensible reforms that generate revenue while minimizing negative economic impacts. The goal is to collect approximately £30 billion ($40 billion) to enhance public finances. Avoidance of “aimless changes” is prioritized.

Alternative Revenue Strategies

The IFS suggests exploring wealth and property taxes as alternatives to raising existing rates. Adjusting capital gains tax would likely be more impactful than a new annual wealth tax. Transferring local property tax responsibilities to regions like London is another consideration, given recent house price increases and stamp duty adjustments.

Economic Considerations & Prioritization

The National Institute of Economic and Social Research cautions against disruptive revenue-raising methods and advises Reeves to reconsider pledges not to increase employee taxes. They believe alternative approaches risk damaging the economy and reducing investment. Rising borrowing costs and abandoned welfare spending plans add to the challenging economic landscape.