In response to Covid-19, the Treasury is considering changes to the UK’s tax system on a scale not seen for decades. While changes to the tax system are much needed, there is a danger that reforms fixate on ‘shoring up’ public finances after Covid-19, which would be the wrong approach and neglects the key reasons for an overhaul. Rather, the tax system offers a powerful tool to shape economic activity and combat systemic issues that long predated Covid-19, such as inequality and environmental degradation. Proposals for redesigning tax should reflect this capacity.
To read the full brief, refer to the Common Wealth website.
