Conclusion 6

The public finances are on an unsustainable long-term trajectory that has been exacerbated by the coronavirus pandemic. Additional tax revenue could make a contribution to addressing this. But the tax measures that are most politically palatable in the short term are often not those that minimise distortions to economic activity in the longer term. This is a large-scale and long-term challenge that requires taking a view of the whole tax system, how it can be reformed, and how it can raise 74 Tax after coronavirus revenue in a way that minimises economic damage as well as effectively supporting public services, which can in turn promote growth. As part of its recovery from the coronavirus pandemic, the UK has an opportunity for a comprehensive review and reform of the tax system.