A top economist once cited by Labour ministers as an inspiration for their tax raid on family farms has lambasted the Budget saying it will not ‘move the needle’ on growth.
Arun Advani, head of the Centre for the Analysis of Taxation, told The Mail on Sunday there had been ‘barely a hint of progress’ in boosting the economy on Wednesday. He said overhauling the tax system was the only effective way to revive the UK economy.
‘For a Government that’s supposedly obsessed with growth, we seem no closer to the realisation that our broken tax system is part of the UK’s growth problem,’ Advani said.
‘Major structural reforms – not just rate-changes or more bolt-ons – are needed to fix it.’
Taxing: There has been ‘barely a hint of progress’ in boosting the economy in Rachel Reeves’ Budget
Advani’s criticism is likely to be among those reaching the ears of Treasury officials.
Last year, two ministers, including Treasury Minister James Murray, said research from Advani’s think-tank was key to the decision to charge inheritance tax on farms worth £1 million or more, indicating his views hold considerable sway with the Government.
Advani is one of a group of eight senior economists from both sides of the political divide calling for big changes in how the UK collects tax.
Proposals include lower VAT rates and reform to property and corporation taxes.
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