Following the initial Government response, the Committee published a further report, expressing disappointment that some of its recommendations had been dismissed without a full explanation.
The Committee’s further report called on the Treasury to provide a clearer explanation of why it cannot accept its recommendation on the need for a tax strategy. The Committee is today publishing the Treasury’s additional response.
The Committee’s report, published in March, included the following recommendations:
- Now is not the time for tax rises or fiscal consolidation, but significant fiscal measures, including revenue raising, will probably be needed in the future
- Government’s tax lock manifesto commitment will come under significant pressure
- Moderate increase in corporation tax could raise revenue without damaging growth
- Government should prioritise reforming stamp duty land tax
- Government should introduce temporary three-year loss carry-back for trading losses and increase investment incentives for business