Our Chief Executive, Jonathan Isaby, has a letter in The Times today:
Sir, James Sproule, of the Institute of Directors, and David Blanchflower make sensible suggestions for tax changes (“Hammond under pressure to slash VAT and delay tax”, Aug 5). A VAT cut would reduce prices for consumers while increased capital allowances would encourage investment.
The proposals from the Institute for Public Policy Research for more tax on wealth and the axing of tax relief on buy-to-let mortgages are less welcome. In the 1970s, Denis Healey gave up on a wealth tax after, in his own words, “finding it impossible to draft one that would yield enough revenue to be worth the administrative cost”. Nothing has changed and it would send a terrible message to successful entrepreneurs.
Further, hitting buy-to-let mortgages would result in higher rents and fewer properties being available. The only answer to the housing crisis is reform of the planning system to free up more land for house building and to allow denser construction in urban areas.
Jonathan Isaby
CEO, TaxPayers’ Alliance