The Rest Is Money 211. How Should Reeves Fill The £30bn Hole?
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Sep 28, 2025 Ruth Curtice, the former Director of Fiscal Policy at the UK Treasury and now chief executive of the Resolution Foundation, dives into the complexities of tax solutions to address a £30 billion budget hole. She discusses innovative strategies like aligning business taxes, introducing a sugary foods tax, and reforming vehicle taxes by mileage. Ruth emphasizes the impact these changes could have on the self-employed and advocates for measures to collect unpaid taxes from small businesses. Her insights reveal how thoughtful tax reforms can foster growth while being fair.
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Swap Raises Material Revenue
- Rebalancing tax bases raises significant revenue because more people pay income tax than NI.
- The Resolution Foundation estimates this measure could raise about £6 billion.
Pair Sugar Tax With Benefit Reversal
- Pair a new sugar/salt tax with reversing the two-child benefit cap to offset regressivity.
- Use revenue to fund health benefits while protecting low-income households from net losses.
Taxes Can Deliver Health And Fiscal Benefits
- Health-focused levies can prompt reformulation and reduce harms, lowering long-run NHS pressure.
- Reduced consumption may cut tax yield but still deliver public-service savings through better health outcomes.