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

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.