Chancellor urged to remove age-related tax inequalities in Autumn Budget
In a new report, think tank the Resolution Foundation has urged Chancellor Philip Hammond to tackle age-related tax inequalities in the upcoming Autumn Budget.
The Resolution Foundation has called for Mr Hammond to unfreeze working-age benefits in 2018 to help raise living standards for young families.
It also stated that, rather than adding new age-related inequalities into the UK’s tax system, the government should aim to tackle existing ones. As such, the Foundation suggested that UK workers of all ages should pay the same national insurance contributions (NICs).
The Resolution Foundation stated that equalising the tax treatment for workers of differing ages is progressive as ‘four-fifths of the revenues would come from the richest fifth of pensioners, with most unaffected’.
Commenting on the proposals, Laura Gardiner, Senior Policy Analyst at the Resolution Foundation, said: ‘In recent weeks the Budget run-in has focused on a looming economic downgrade and preparations for Brexit. But the Chancellor should remember the bigger picture and deliver a Budget that tackles one of the biggest challenges Britain faces – our failure to deliver living standards progress for young people today.
‘The Chancellor should avoid ill-advised tax cuts for the young. Instead he should remove existing age-related tax inequalities to help fund the unfreezing of working-age benefits next year.’
The Chancellor will deliver the Autumn Budget on Wednesday 22 November. Make sure you keep an eye on our website for coverage of the key announcements.