‘Offer real tax reform’, says BYM
'We urgently need policies which both address the immediate crisis and fix the structural problems with our economy that have led us to this point.'
Britain Yearly Meeting (BYM) has joined ninety organisations in urging the UK government to offer real tax reform. The call came after the government announced a 2p cut in national insurance in its 2024 budget.
Real changes to the way wealth – and the income it brings – is taxed could raise the revenue needed to tackle the cost-of-living crisis, said BYM. It welcomed the surprise scrapping of the non-domiciled tax status, but was ‘waiting to see the detail of what would replace it’.
The letter cited figures from the National Institute for Economic and Social Research (NIESR) which established that Britain’s poorest households are now £4,500 worse off than at the start of the Covid pandemic.
‘Instead of tinkering with tax rates which will make little difference to most people’s finances, we urgently need policies which both address the immediate crisis and fix the structural problems with our economy that have led us to this point,’ signatories wrote.
‘That means taking action to reform broken markets, cracking down on excess profits, increasing investment in public services and infrastructure to secure a climate safe future.’
BYM noted the extension of the windfall tax on energy companies to 2029, and the increase in Air Passenger Duty for business-class passengers. But it was ‘extremely concerned about the continuing decline in interest in addressing climate issues’. Jeremy Hunt, chancellor of the Exchequer, scrapped the planned unfreezing of fuel duty, at a cost of £2 billion, and maintained the 5p cut to petrol taxes.
Paul Parker, recording clerk for BYM, said: ‘While it’s promising to see a tax on the obscene profits made by polluters continue, it’s a tax with a huge loophole and it does little to change the government’s disappointing lack of commitment to reach carbon zero… What we need to see is the end of financial support for the oil and gas industry, whether through licensing rounds or tax relief. And billions of pounds of investment into warm homes, clean energy and support for communities affected by climate breakdown.’
Comments
Please login to add a comment
