The fiscal response to Covid-19: 'Thinking big' on tax policy after the crisis

  • Funded by UK Research and Innovation (UKRI)
  • Total publications:0 publications

Grant number: ESRCCOVID101

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Key facts

  • Disease

    COVID-19
  • Known Financial Commitments (USD)

    $128,094.42
  • Funder

    UK Research and Innovation (UKRI)
  • Principle Investigator

    Pending
  • Research Location

    United Kingdom, Europe
  • Lead Research Institution

    London School of Economics and Political Science
  • Research Category

    Secondary impacts of disease, response & control measures

  • Research Subcategory

    Economic impacts

  • Special Interest Tags

    Gender

  • Study Subject

    Non-Clinical

  • Clinical Trial Details

    N/A

  • Broad Policy Alignment

    Pending

  • Age Group

    Adults (18 and older)

  • Vulnerable Population

    Unspecified

  • Occupations of Interest

    Other

Abstract

Covid-19 is placing extraordinary pressure on public finances. The short- and long-term responses to the crisis will need to be matched by a transformative fiscal settlement for the UK. So far, there has been a lack of 'big thinking' on tax policy to match the scale of this challenge. Reforms to existing taxes are necessary, but may be insufficient._x005F_x000D_ This project convenes a network of world-leading tax experts to provide rapid-response evidence and recommendations to government on the case for introducing a new 'wealth tax' for the UK. Unlike many other OECD countries, the UK has never had a wealth tax; the last time this policy was seriously considered was in 1974._x005F_x000D_ The project will ensure that this policy option is 'on the table' in upcoming fiscal debates about the national recovery from Covid-19, by:_x005F_x000D_ WP1: Creating an evidence base - we have already commissioned eleven 'evidence papers' on key principles and design issues. These papers will provide a detailed and robust new evidence-base that can be used directly by officials at HM Treasury and HMRC._x005F_x000D_ WP2: Modelling revenue and distributional impacts - we are using state-of-the-art quantitative methods and the best-available data sources to model how much revenue a wealth tax could raise, and its impact on the distribution of wealth, based on a range of policy options._x005F_x000D_ WP3: Providing policy recommendations - we will publish a final report summarising our conclusions on the feasibility and design of a new wealth tax for the UK, including (if appropriate) a fully-costed 'ready to legislate' proposal._x005F_x000D_ If funded, we will deliver all of these work packages - including the final report - by December 2020, in time to feed into the Budget and associated fiscal debates occuring in Spring 2021.