Taxing times

This report from the UK think tank Institute for Government examines the need to reform the UK tax system.

The UK tax system is in need of major structural reform if it is to meet the challenges of the future. Boris Johnson and Jeremy Hunt, the two candidates in the race to become the next Prime Minister, have proposed tax cuts – but neither has proposed the structural tax reforms needed to meet growing public spending pressures and changes in the economy. This report shows that growing public spending pressures and declining revenues pose a stark choice to future prime ministers and governments: without raising taxes or borrowing more, the scale or scope of public services will need to shrink. Our flawed tax system makes it harder to address this choice and calls out for reform. The report outlines the growing need to reform the UK tax system. It is part of a new Institute for Government project examining the barriers to tax reform and how they can be overcome.

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