Fiscal rules and frameworks

The IFS Green Budget looks at the ongoing impacts of the COVID-19 pandemic, as the Chancellor aims to secure a lasting recovery and deliver on the Government’s other objectives and priorities.

How does the taxation of housing fit into how we analyse other taxes and the tax system as a whole, and what can we conclude about how it should be reformed? This was a Keynote Presentation given at the Tax Research Network Annual Conference, at Aston University and online, on 9 September 2021.

In this observation we look at the arguments to consider when assessing the merits of the large injection of education spending.

The tax system discourages employment, investment and risk-taking. It needs reform, say Stuart Adam and Helen Miller.

The 2020 Spending Review, due to conclude on 25 November, will not be the comprehensive, multi-year review we were originally promised. Instead, the Chancellor has decided to set plans for 2021−22 only – a sensible decision in the circumstances. But while this Spending Review might be more short-term in its nature than usual, it will still contain important announcements.

The Chancellor and Shadow Chancellor have both outlined the fiscal targets that they would seek to adhere to. Mr Javid has chosen to adopt a forward-looking rolling target aimed at current budget balance. In other words, day-to-day spending could not exceed total revenues. This is very similar in nature to Mr McDonnell’s longstanding current budget target.

The long awaited 2019 Spending Review has finally been timetabled.