The Centre for Policy Studies wants Britain to have a tax system that is simple, fair, and pro-growth. And although there have been some encouraging moves on tax policy in recent years – the corporation tax rate has gone down, the personal allowance has gone up, and savers have benefited from more generous ISAs – there is still a lot of work to be done.
We have an income tax system that is riddled with punitive marginal rates and perverse incentives that discourage work and enterprise. We have heavy property taxes that distort markets and contribute to a growing housing crisis. And we tax businesses in a way that does little to promote long-term investment. Above all, we have a tax burden that stands at its highest level in decades, and a tax code that is – at least by some measures – the longest in the world.
If we’re going to rise to the economic challenges of the 21st Century, this has to change. We need tax reform that puts more money in people’s pockets, and promotes robust, sustainable growth. At the Centre for Policy Studies, our aim is to design tax policies that meet these objectives in a practical, popular way – and which are rooted in our core principles of enterprise, opportunity, and ownership.
Our economic agenda is not confined to tax reform, however. Alongside projects looking at housing, welfare, and business policy, the Centre for Policy Studies is working on ideas to lower the cost of living – not through heavy-handed state intervention, but with reforms that make markets more competitive and ensure that consumer interests always come first.
The salience of this issue should not be underestimated. Our “New Generation” polling asked people what government could do to make their own lives better, and across the age spectrum, “do more to keep down the cost of living” was a clear winner. Those aged 18–24 ranked it just behind “more affordable housing”, and those over 65 put it second behind “better health service provision”. But every other age group made lower living costs their number one priority.
Finding realistic ways to make British life more affordable is therefore a central focus of the Centre for Policy Studies’ work.
Under Labour’s plans 750,000 more households could be in welfare dependency by 2020.
If the Labour Party wins the General Election, it has pledged to increase the main rate of corporation tax. Our model estimates that, other things being equal, a rising corporation tax would lead to a reduction in total employment of 96,400 by 2018/19 compared to the OBR’s estimates of employment under the Government’s plans.
Without structural change, the Local Government Pension Scheme is in terminal decline.
The Chancellor’s Autumn Statement speech today outlined a number of welcome changes as well as a lot of tinkering.
The Chancellor should take the opportunity in his Autumn Statement speech on Wednesday to outline a series of proposals which are all cost neutral (at worst), which will boost underlying growth and which will continue to reform public services
Britain must boost its skills if wages are to increase – says Adam Memon, Head of Economic Research at the Centre for Policy Studies.
Britain can be a global hub for peer to peer markets.
Leading economist Keith Boyfield, together with top public lawyer Daniel Greenberg, propose a simple solution to Britain’s planning problem.
If Britain’s employment success is to continue, politicians of all stripes must learn from Germany’s successful labour market reforms.
At the beginning of the year the Bank of England expected a return to real wage growth. The Governor of the Bank of England now forecasts that wages will grow in real terms by mid-2015. Is the BoE forecast reasonable?
National Insurance Fund exhaustion could occur as soon as next year warns Michael Johnson.
Head of Economic Research, Adam Memon, estimates the potential cost to the UK economy of Labour’s tax policy proposals, if elected in the upcoming general election.
Leading economist Tim Morgan warns against any sense of complacency over Britain’s economic future despite the recent encouraging trends.
Leading economist Tim Morgan identifies three major risks in the event that the Scots vote “yes” to independence.