Osborne responds – Part II

Here are George Osborne’s answers to the last five questions put forward by CoffeeHousers. For Part I click here

GS London

“What are the realistic possibilities of a flat-rate taxation system? If not, please explain why not, and, failing that, would a conservative government make effort to drastically reduce the complexity in current taxation?”

There are important lessons we can learn from the flat tax. Under Labour, Britain’s tax code has more than doubled in length, adding to the administrative burden for businesses and individuals across Britain. That’s why I have set out a long-term commitment to make our tax system simpler and fairer, and asked Lord Howe to develop detailed proposals to change the way tax law is made and bring an end to Labour’s stealth taxes. However, when it comes to a pure flat tax, I’m not convinced that this is the right model for a mature economy. As Lord Forsyth’s Tax Reform Commission put it: “A flat tax is the right direction but not the right solution for the UK.”

Damon