Andy Burnham is facing calls to scrap income tax and National Insurance when he becomes Prime Minister, as part of a radical overhaul of the UK's tax system proposed by economists.
Prosperity 2030 Proposal
A new plan, named Prosperity 2030, suggests abolishing six key taxes—including income tax, inheritance tax, and National Insurance contributions—and replacing them with a single charge, according to The Guardian. The new "national contributions" would be levied on all forms of income.
The authors argue that a radical rethink is needed on how tax is paid in the UK, following years of sluggish growth and stagnant wages. They claim the single charge could bring in billions of pounds more in revenue.
No Indication of Adoption
There is currently no suggestion that Burnham intends to follow through on these plans when he becomes Prime Minister later this month. However, it is the latest call for a major overhaul of tax and spending, amid growing claims that the state pension triple lock is unsustainable.
The former Greater Manchester Mayor has stated that the triple lock will remain until at least the end of the current Parliament, in line with Labour's 2024 manifesto.
Expert Opinion
Professor Henrietta Moore, director of the Institute for Global Prosperity at University College London, said of the tax proposal: "Prosperity 2030 is about rebuilding the systems that shape everyday life, work, care, housing, skills and the cost of living. It is a plan for an economy that measures success by whether people can live secure, dignified and hopeful lives."
