Committees

Treasury Committee to investigate UK’s tax burden

24 February 2022

The Treasury Committee will examine the level of the current tax burden with economists and thinktanks at 3:15pm on Monday 28 February.

Purpose of the session

With the overall level of tax as a proportion of GDP set to increase to the highest level since the 1950s, the Committee will take evidence on whether the level of taxation is too high, and whether the Chancellor’s intention to cut taxes before the next election is sustainable.

The Committee will examine the competitiveness of the UK’s tax system and which would be the optimum taxes to reduce. MPs will investigate whether tax cuts would be inflationary or disinflationary and whether Government revenue could be increased by a reduction in taxation.

In the second panel of the session, the Committee will explore which tax cuts would best incentivise economic growth, increase job creation and reduce inequality. MPs will also consider whether tax reductions would increase public consumption and corporate investment.

Chair's comments

Commenting ahead of the session, Rt. Hon. Mel Stride MP, Chair of the Treasury Committee, said:

“With the UK’s tax burden about to increase to levels not seen since the end of the second world war, we are investigating whether the UK’s tax burden is too high, and what can be done to reduce it. We want to know whether the Chancellor’s ambition to cut taxes before the end of this parliament is achievable, which taxes could be reduced and whether a reduction in taxation could in fact increase Government revenues.

“With a cost of living squeeze on the horizon, we’ll also be hearing from experts on whether tax cuts could incentivise economic growth and reduce inequality.”

Witnesses

3:15pm

  • Rhiannon Kinghall Were, Head of Tax Policy, Macfarlanes
  • Stuart Adam, Senior Research Economist, Institute for Fiscal Studies
  • Professor Stephen Millard, Deputy Director for Macroeconomic Policy, National Institute for Economic and Social Research (NIESR)
  • Jon Richardson, Head of Tax Policy, PwC

4:15pm

  • Dr Miatta Fahnbulleh, Chief Executive, New Economics Foundation
  • John O’Connell, Chief Executive, TaxPayers’ Alliance
  • Suren Thiru, Chief Economist, British Chambers of Commerce

Further information

Image credit: HM Treasury, Flickr.com, CC BY-NC-ND 2.0