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The Coalition's taxes and the need for supply-side reform

    Earlier this week, our friends at the Taxpayers’ Alliance revealed that the Coalition has been responsible for a net 180 tax rises since it came to power.

    This breaks down to:

    299 separate tax rises already implemented or planned before May 2015.

    • Of this, 254 separate tax rises have already been implemented since the 2010 General Election.
    • A further 45 tax rises are planned before the end of this Parliament.

    119 separate tax cuts already implemented or planned before May 2015.

    • Of this, 109 separate tax cuts have been implemented since the 2010 General Election.
    • A further 10 tax cuts are planned before the end of this Parliament.

    These statistics clash with the kind of supply-side measures City AM editor Allister Heath called for in his Telegraph column this week.

    Instead of managed decline - something Margaret Thatcher steadfastly refused to accept - Heath made the case for a radical tax-cutting agenda, to be financed by further spending cuts.

    At the CPS, we have been thinking along the same lines and you can read our work on cutting Capital Gains Tax, Corporation Tax, and why we should go further on government spending reductions.

    Piecemeal spending reductions, while politically less damaging in the short-term, cannot alone take the place of a coherent and credible plan for supply-side reform. Such a prospectus is vital in improving the long-term economic growth rate of the UK economy. 

    Lewis joined the Centre for Policy Studies in April 2011 with responsibility for social media and digital engagement.

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