Sun, 12 Oct 2025

Sun, 12 Oct 2025 Reeves urged to avoid 'half-baked' tax fixes in Budget

The think tank says the government should seize the opportunity to reform the tax system.

* Chancellor Rachel Reeves should avoid "directionless tinkering and half-baked fixes" when trying to boost government tax take, according to a think tank.
* The Institute for Fiscal Studies (IFS) warns that some tax rises could be "especially economically harmful".
* The Treasury says the Budget will strike the right balance between funding public services and encouraging growth and investment.
* To meet her rules, Reeves may have to raise tens of billions of pounds through taxes or spending cuts.
* The IFS suggests wider reform to the tax system, including aligning overall tax rates across different forms of income.
* Potential reforms include changes to property tax and capital gains tax.
* A wealth tax is discouraged due to "huge practical challenges".
* Restricting income tax relief for pension contributions is also discouraged as it would be "unfair and distortionary".
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