Tax reform commission: We need a simpler tax system

Thursday, 19, Oct 2006 12:00

The current tax system is too complicated and unfair, a Conservative policy group has argued as it announces proposals to make cuts worth £21 billion.

The tax reform commission proposed reforms to personal and business tax, which would include slashing 2p off the basic rate of income tax and cutting corporation tax to 20 per cent.

There has been an "eye-watering increase in UK tax complexity and instability" which damages government, the report says.

It argues that the tax system is "undermining UK competitiveness and precipitating relative economic decline".

Chairman of the commission Lord Forsyth writes in the foreword: "Our proposals are nearly all achievable over a parliament and are realistic.

"They set a direction of travel. While the speed of the journey is a matter for political judgment, the destination is clear – a simpler, lower, flatter, fairer, and more stable tax system."