Think-tank calls for tax hikes

The Resolution Foundation think-tank has urged Chancellor Rachel Reeves to implement significant changes to capital gains tax and inheritance tax in the upcoming Budget, saying reforms could potentially raise over £20bn annually for the Treasury. With a £22bn gap in public finances, the think-tank emphasised that tax increases are a traditional response following elections, with principal economist Adam Corlett saying: "Tax rises are a dead cert and time-honoured tradition." The report suggests that the CGT regime is "ripe for reform" and that changes could bring in £12bn a year. It added that closing "loopholes" in inheritance tax could raise a further £2bn, while levying National Insurance on employers' contributions to staff pensions could potentially generate another £9bn a year. The think-tank has also called on ministers to "get the ball rolling" on longer-term tax reforms to business rates, council tax and road pricing.

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