Simon Sweetman looks at the road ahead for tax policy now that the Conservatives and Liberal Democrats have formed their coalition.
At long last we have a government, but what will they do with tax? Will we get the Office of Tax Simplification previously pledged by the Conservatives (which sounds to me about as likely as the Ministry of Justice)? Will PAYE be handed over to the banks?
With £6bn to save this year, we can assume that there will be an overall increase in tax, despite the fact that the joint statement says they will concentrate on cuts not tax increases. Of course, it is not easy to start making tax changes at this point in the year that will have an early effect; even in the emergency Budget presumably most tax changes will come in from April 2011.
First of all, w...