Five fixes for the tax system
The Spring Budget is an ideal opportunity to shake up some worn-out concepts and assumptions embedded in the tax system, so Rebecca has drafted a Budget speech to do just that.
Madame Deputy Speaker – I want to be honest with the House and the country; the UK needs to raise more tax revenue. The country has borrowed over £400bn to fight the coronavirus and to support businesses through the pandemic. That debt will need to be repaid eventually.
The crisis has also placed an enormous strain on the National Health Service, and has exposed the threadbare funding of certain key services. We need to strengthen our wonderful NHS by supporting it in its entirety, including mental health services and social care.
The NHS staff at all levels should be properly rewarded, so I am proposing that annual pay rises for health and social care service workers are tied to the annual percentage increase in state pensions. If our pensioners deserve a pay rise, our hardworking nurses and care workers certainly deserve the same.
To encourage more people to join our rejuvenated NHS, I will instruct the Student Loans Company to pause the collection of student loan repayments from individuals who accept a full-time position within the NHS. If that person remains employed by an NHS public body for at least five years, their entire debt with the Student Loan Company will be cancelled.
This ongoing support for the NHS and social care requires funding for the tax system, this money can’t be provided by endless increasing the national debt. The tax system requires restructuring.
These are my five structural proposals.
1. National Insurance Contributions are taxes
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