Reform-linked think tank calls for sweeping City deregulation and tax cuts

A Reform UK-linked think tank has called for sweeping tax cuts for investors and an overhaul of regulation in a report that was described by Richard Tice and Robert Jenrick as a “serious contribution” to the UK’s growth debate. 

The Centre for a Better Britain has called for the abolition of capital gains taxes and national insurance while also calling for the wider reduction of the state, calling both moves “essential for stronger growth.”

The think tank said capital gains tax was one of Britain’s “most destructive taxes” and warned the Chancellor that keeping it stifled productivity growth. 

The report, which includes contributions from dozens of City investors and economists, was presented as a “programme of radical reform to Britain’s financial system and tax code”. 

Its publication comes just under a year after deputy leader Richard Tice called for a “Big Reform” of the City, an echo of Margaret Thatcher’s Big Bang changes, focusing on areas such as pensions, lending to small businesses and the HMRC code. 

The report’s section on the UK’s tax system includes proposals to announce an “eight-year transition” phase to bring corporation tax down from 25 per cent to 15 per cent. 

Authors behind CABB, which was created by Reform’s former chief operating officer, also argued for a reform of other levies such as stamp duty and reforms on income tax distortions, such as the £100,000 tax trap. 

While figures for tax cuts are not included, the paper says that tax reform should be “part of a wider reduction in the size of the state” and no tax changes should be implemented “until an equivalent spending saving has been identified”. 

Reform UK’s Tice praises new paper

Reform UK’s deputy leader Richard Tice and economic spokesman Robert Jenrick praised the think tank for adding ideas on “how to get our economy growing faster”. 

“The analysis is deep and we will be carefully reviewing their recommendations,” the pair said in a joint statement. “Reform UK has already embraced variants of some of the recommendations.”

“Regulatory gold plating and a mindset of precautionary rather than proactionary has meant too many barriers, too many costs that reduce activity and prevent real growth.”

The full details are set to be unveiled to various analysts on Wednesday. More than 30 proposals are highlighted in a summary section yet researchers said over 150 policy recommendations were included in total.