Resolution Foundation: Treasury could stop tax credit cuts and still run surplus
The Treasury could reverse plans to cut tax credits and still meet its goal of eliminating the deficit, according to a new report out today from the Resolution Foundation.
The report suggests five policy changes that would raise significant revenue for the government, including slowing the rate of increase in the personal allowance by tying it to inflation, increasing the basic rate of tax limit to rise in line with inflation, and reversing proposed increases to the inheritance tax threshold and cuts to corporation tax.
All of the report’s proposals would require the government to go back on its manifesto promises.