Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Rishi Sunak should cut national insurance and make investment relief permanent, think tank report argues

by June 28, 2023
June 28, 2023
Rishi Sunak should cut national insurance and make investment relief permanent, think tank report argues

Prime Minister Rishi Sunak and Chancellor Jeremy Hunt should cut companies’ national insurance contributions and make the temporary business investment tax relief permanent, an influential think tank has argued in a radical blueprint to overhaul the UK’s tax regime.

Employers’ should be subjected to a 12.8 per cent national insurance levy, one percentage point lower than the present rate, according to a report out today from the Resolution Foundation.

Reducing reliance on generating tax revenues from earnings would stimulate employment and help the UK reverse its more than decade-long stagnant economic growth, the think tank has claimed.

Making the current 100 per cent investment tax relief permanent would incentivise businesses to ramp up capital spending and create more opportunities for GDP growth to flourish, the report argues.

Britain’s tax burden – tax revenues as a share of output – is on track to hit 38 per cent in five years, its highest levels since just after the second world war, up from an average of 33 per cent over the past two decades or so.

That will amount to a near £4,200 tax increase per household.

As a result, policymakers need to focus on delivering a more effective tax regime to justify the Treasury grabbing a greater share of voters’ incomes.

“This rising quantity of tax revenue has not been matched by a rising quality of tax policy,” Adam Corlett, principal economist at the Resolution Foundation, said.

“Britain’s tax system needs a complete overhaul so that it is focused on helping rather than hindering economic growth, reducing inequality and creating a level playing field,” he added.

Politicians must stop chopping and changing tax policy or risk choking business growth, innovation and employment, the report said.

Last year, former PM Liz Truss launched the biggest tax cutting budget since 1972, only for nearly all her measures to be ditched by now Chancellor Jeremy Hunt a month or so later after the package wobbled financial markets.

In 2021, Boris Johnson and Sunak raised national insurance rates 1.25 percentage points. The move was canned by Truss upon entry to Number 10.

“U-turns and fiscal fudging have been too common, and reform side-lined too often,” the Resolution Foundation said, adding that MPs have decided to “pretend a major tax-cutting era is just around the corner” instead of focusing on “improving the economic efficiency, equity and predictability of the tax system”.

Read more:
Rishi Sunak should cut national insurance and make investment relief permanent, think tank report argues

0
FacebookTwitterGoogle +Pinterest
previous post
Pennsylvania Senate approves legislation aimed at reducing the number of people on probation, in jail
next post
Mulberry chief calls for ‘tourist tax’ to be scrapped as London brands “suffering” as shoppers go elsewhere

You may also like

Revolut Secures 10-Year Lease in Canary Wharf, Enhancing...

June 13, 2024

Average UK worker £200 a week worse off...

May 8, 2024

Supply fears push up gas prices to record...

August 17, 2022

 The Most Renowned Shopping Destinations Around the World

March 1, 2023

An Analysis of the Top Performing UK Betting...

March 3, 2025

IMF warns UK government debt market is vulnerable...

May 28, 2025

Former Liverpool star Phil Thompson loses £300,000 IR35...

March 18, 2025

Squeeze on household incomes to intensify as tough...

December 29, 2022

Lessons from Cineworld’s restructuring?

June 20, 2023

A Guide to Slot Game Development

July 22, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved