EMBARGOED 00:01 5 NOVEMBER 2025
A rare alliance of leading think tanks unveils joint plan for fairer, pro-growth reform – without raising overall levels of taxation.
A coalition of leading think tanks from across the political spectrum has today set out a plan to fix Britain’s broken tax system and get the economy growing again.
Tax Reforms for Growth, co-authored by experts from think tanks such as the Centre for the Analysis of Taxation (CenTax), the Centre for Policy Studies (CPS), the IPPR, the Adam Smith Institute, the New Economics Foundation, Bright Blue, the Joseph Rowntree Foundation (JRF), outlines seven revenue-neutral reforms that would make the UK’s tax system “fairer, more effective and more pro-growth”.
The co-authors span the political spectrum but share a view that the UK’s outdated and distortionary tax rules are holding back investment and productivity – and that change is possible whatever the overall tax take.
The report highlights seven key areas for reform:
- Replace outdated property taxes with a modern system based on current values. This would involve abolishing Stamp Duty and reforming Council Tax and Business Rates.
- Lower VAT while broadening the base. Compensate lower income groups for higher costs on basic goods.
- Address marginal income tax rates that punish work. This includes reducing the marginal rate that applies to the removal of childcare subsidies.
- Tax income from work equally. Merge Income Tax and National Insurance to remove distortions.
- Tax landlords on profits as other income. Allow a full deduction for mortgage interest costs, or equivalent allowance for the cost of borrowing.
- Reform Capital Gains Tax. Introduce an ‘investment allowance’ while tackling exemptions.
- Reform Corporation Tax. Give upfront tax relief for all business expenditure and end the capital/income distinction in tax law.
The coalition will launch the paper at a reception event in Parliament this afternoon attended by MPs from across the political spectrum.
Arun Advani, Director of CenTax, said:
“The UK’s tax code is riddled with inconsistencies and distortions that discourage investment, penalise work and hold back productivity. There is widespread agreement on the need for proper reform. The upcoming Budget is an opportunity for the Chancellor to look at the taxsystem as a whole, and ensure that whatever the total tax take, any changes are also serving her growth mission.
Robert Colvile, Director of the Centre for Policy Studies, said:
“There are all kinds of disagreements among think tanks about the ideal level of taxation, but a surprising level of consensus about the problems with the current system. Whatever your political position, it’s hard to argue that we have a tax system that’s clear, consistent and pro-growth. Hopefully, politicians will be inspired by the broad support for tax simplification across both left and right.”
ENDS
Contact: Meg Davies (Communications and Public Affairs Lead, CenTax), megan.l.davies@warwick.ac.uk
Notes to editor:
- Tax Reforms for UK Growth is a joint publication by:
- Andy Summers – Director, Centax
- Arun Advani – Director, CenTax
- Carsten Jung – Associate Director for economic policy and AI, the IPPR
- Chris Belfield – Principal Policy Adviser, JRF
- Dan Neidle – Founder, Tax Policy Associates
- Robert Colvile – Director, Centre for Policy Studies
- Hannah Peaker – Deputy CEO, New Economics Foundation
- James Howat – Chief Economist, Labour Together
- James Lawson – Chairman, Adam Smith Institute
- Ryan Shorthouse – CEO, Bright Blue
- All proposals are revenue neutral and reflect areas of consensus among economists and policy experts across the political spectrum.
- You can read the paper here.
