The UK Tax Regime – What Impact Does It Have On Investment, Performance and Productivity
18 March 2020
16.30 – 19.30
The RAF Club
Tax will be one of the main political issues of the next decade. A ﬁnancial crisis followed by a decade of sluggish productivity growth has left Western economies in poor shape, and governments carrying relatively high levels of debt. The global phenomenon of ageing populations will pile more pressure on already stretched public finances.
Governments will struggle to strike a balance between headline rates for political purposes and the total tax take which dictates ﬁscal policy and public investment.
Tax is of massive importance to the world of work, in particular to performance and reward, where its impact is often misunderstood. So, what are some of the issues?
• Is our tax system too complex – and what do we actually mean by ‘tax simpliﬁ cation’?
• What distinguishes the UK approach to tax on employees and companies? Do other countries do it better – and how?
• Is the interaction of tax, allowances and beneﬁ ts causing marginal tax rates much higher than headline 20p and 40p rates suggest?
• Is this destroying the incentive to work harder and gain promotion? To what extent is tax a driver of behaviour?
• Is the UK in danger of driving out its entrepreneurs and foreign investment – both of which generate employment and growth?
• How big a problem is corporate tax evasion – and can it be solved on an individual country basis?
• To what extent is the gig economy eroding the tax base – and what are the practical solutions?
• Are there any politically acceptable solutions which might address the challenge of raising UK productivity?