When the OBR published its Economic and Fiscal Outlook in December last year, it forecast that public spending would reach 35% of GDP by 2020 under the Coalition’s plans. Many condemned this as a return to the 1930s. They were of course wrong. However in recent weeks a combination of those demanding a larger state, pessimism over deficit reduction and recent scandals involving the use of aggressive tax avoidance measures by big banks has led to renewed calls for higher taxes. These arguments should be rejected. A heavier tax burden would undermine productivity growth, damage work incentives and make Britain less competitive internationally.