Source · Select Committees · Treasury Committee
Recommendation 18
18
Paragraph: 120
The Government should wherever possible announce major changes to the rates of existing taxes and...
Recommendation
The Government should wherever possible announce major changes to the rates of existing taxes and the introduction of new taxes at a Budget or other fiscal event such as a Spring Statement. This allows Parliament to consider the measures announced alongside an independent forecast by the OBR of the fiscal consequences of the measures.
Paragraph Reference:
120
Government Response
Acknowledged
HM Government
Acknowledged
I note the Committee’s concern about the announcement of the Health and Social Care Levy outside of a fiscal event. The government announces most changes to the tax system at fiscal events and through the Tax Administration and Maintenance command paper, as part of its commitment to predictability and stability in tax policy making. The Health and Social Care Levy was developed and announced at speed to provide certainty to a health sector facing a backlog resulting from the pandemic, and to allow the social care system to prepare for the significant changes to the charging system announced alongside the Levy. The government has set out an ambitious timetable to bring in these reforms by October 2023. In addition, the government published a detailed tax technical annex and distributional analysis to provide as much information as possible and updated the costing and impacts at Autumn Budget 2021.