Rachel Reeves could solve all her problems with a VAT raid
14 August 2025
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In the Media
In the Media
Reem Ibrahim is quoted in the London Standard
15 August 2025
Uncategorized
20 January 2026
Tom Clougherty writes for The Times
Our Executive Director Tom Clougherty has written for The Times on broadening the VAT base.
The article said:
“Britain’s VAT base is exceptionally narrow by international standards. Broadening it could raise huge amounts of revenue while also simplifying the tax system and removing some of the economic distortions it creates.”
“But when we’re talking about fiscal consolidation on this scale, there are no pain-free options; it is all about trade-offs. The government ought to prioritise spending restraint as well as pro-growth regulatory reforms to boost the economy. But if higher taxes are unavoidable, broadening the VAT base has much more to recommend it economically than any other option.”
Read the full article here.
The article said:
“Britain’s VAT base is exceptionally narrow by international standards. Broadening it could raise huge amounts of revenue while also simplifying the tax system and removing some of the economic distortions it creates.”
“Properly structured consumption taxes are relatively benign from an economic standpoint. Unlike taxes on income or profits, they don’t discourage saving and investment.”
“But when we’re talking about fiscal consolidation on this scale, there are no pain-free options; it is all about trade-offs. The government ought to prioritise spending restraint as well as pro-growth regulatory reforms to boost the economy. But if higher taxes are unavoidable, broadening the VAT base has much more to recommend it economically than any other option.”
Read the full article here.
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