Tax and Fiscal Policy

Help the most vulnerable by reducing their tax burden

Julian Jessop writes for the Daily Express

Julian Jessop, IEA Economics Fellow, has written for the Daily Mail on the measures the government should take to reduce the impact of inflation on society’s most vulnerable.

“the response to the rise in energy bills has missed the mark. The £150 Council Tax rebate is not well-targeted, while the £200 discount on bills is only a loan that will have to be repaid.”

“It would make more sense to provide an additional, temporary top-up to benefits for those on low incomes, including pensioners. The government has already gone a long way down this route, by extending eligibility for the Warm Home Discount, but could go further, by increasing the amounts paid to each household.”

“the government should delay the increase in National Insurance for at least a year. The rises in incomes and prices mean that families and businesses are already paying more tax than expected, and government borrowing is lower than forecast. There is no good reason to add even more to their burden now.”

Read the full article here.