Released 02 June 2021
The Government has responded to the Treasury report on Tax After Coronavirus, which was published on 1 March 2021.
In reply, the Committee has expressed its disappointment that some of its recommendations, particularly around strategy, have been dismissed without a full explanation.
Committee recommendations included:
•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; and
•Government should introduce temporary three-year loss carry-back for trading losses and increase investment incentives for business.
Further information, including links to the report and Government response, can be found at https://committees.parliament.uk/committee/158/treasury-committee/news/155576/government-responds-to-treasury-committees-tax-after-coronavirus-report/.