The Institute for Government, the Chartered Institute of Taxation (CIOT), and the Institute for Fiscal Studies (IFS) have written a joint letter to the new chancellor Sajid Javid urging him to take steps to improve tax policy making. The letter calls on him to take a more strategic approach to tax policy making, consulting earlier and evaluating measures systematically.
Following a similar joint letter sent to the last chancellor, Philip Hammond moved to having just one fiscal event each year. This was a welcome change and a practice we hope the new chancellor will continue. But there is scope to do better still. Good tax policy making will become ever more important as the government addresses the challenges of paying for services and benefits for an ageing population, while economic and behavioural trends undermine existing tax bases.
The recommendations in the letter draw on research undertaken by the IfG, CIOT, and IFS, which underpinned Better Budgets: making tax policy better.