Estimates by the TaxPayers' Alliance find that the coalition will now implement or make plans for 413 separate tax rises before May 2015 (release). In the same period there will have been only 166 tax cuts.
The largest tax policy measure announced is the new allowance for Employers’ National Insurance. That will likely function similarly to an increase in the Personal Allowance for Income Tax or threshold for National Insurance. However the specific design – a ‘per employer’ rather than ‘per employee’ allowance – will concentrate the benefits on richer workers at smaller firms at the expense of poorer workers in bigger firms.Further cuts in Corporation Tax will improve Britain’s competitiveness and increase wages. The freeze in Fuel Duty and freeze and then cut in beer tax will mean lower prices and less pressure on family budgets.Other than that, many of the measures announced were relatively minor changes designed to help specific industries. While they constitute valuable tax relief for individual firms, they also often increase the complexity and instability of the tax system.