Public finances are on an “unsustainable long-term trajectory”, a new report has found.
The UK Treasury Committee has published a unanimously-agreed report as part of its inquiry into Tax After Coronavirus.
Despite the unstable nature of public finances, the inquiry found that now is not the time for tax rises or fiscal consolidation. These could undermine economic recovery.
However, significant fiscal measures, including revenue raising, will likely be needed in the future.
The UK government should set out a tax strategy for what it wants to achieve from the tax system and identify high level ob...