Economists Call for Tax Cuts & Planning Reform to Spur UK Growth Ahead of Budget
London,UK – Economists are urging the government to prioritise planning reform and targeted tax cuts to stimulate economic growth,as Rachel Reeves prepares for this year’s Budget following a damning report from the office for Budget Responsibility (OBR). While acknowledging the need to boost tax receipts, the consensus leans towards reducing levies on areas crucial for investment and activity, rather than broad-based increases.
The recommendations, stemming from a recent survey of economists, suggest cuts to stamp Duty, national Insurance, and Corporation Tax, alongside Business Rates and Capital Gains Tax. This approach contrasts with calls for increased revenue from Excise Duties, Fuel Duties, and Value Added Tax (VAT), which economists identified as options to “minimise the economic costs of taxation” should revenue increases be necessary.
The survey highlighted energy costs as a important, underrated weakness for the UK economy, with three-quarters of respondents supporting further North Sea exploration. However, the think tank acknowledged “little the government can do” to address high energy prices in the short term.
beyond taxation, economists pointed to tax reform and potentially scrapping the triple lock pension as avenues to address precarious public finances. expanding the Global Talent visa scheme was also identified as a potential economic win for Labour, though the OBR is unlikely to recognize such changes as a significant growth policy.
