Three Christian organisations have called on the Chancellor to make the tax system fairer for families ahead of the Spring Statement later this month.
The Catholic Union of Great Britain; the Centre for Enterprise, Markets and Ethics; and the Benedict XVI Centre for Religion and Society, St Mary’s University, Twickenham have called for action from the Chancellor in light of rising inflation and soaring energy prices.
In their joint letter to the Chancellor, the three organisations have called on Rishi Sunak to set up a commission to look at ways of easing the tax burden on families.
The three organisations called on the Government to implement fully transferable tax allowances and bands ahead of the Autumn Budget last year so that all families with the same income pay the same amount of tax regardless of whether they are single-earner or dual-earner households.
It is hoped that a new commission would be able to consider this proposal in more detail – along with other measures to help families keep more of the money they earn – and come up with a set of actions for the Treasury to take forward.
The intervention from the three organisations is intended to help bring about a system whereby all families pay the same amount of tax whatever the split of income between individuals within the family.
The Spring Statement is due to take place on Wednesday 23 March.
Professor Philip Booth, Professor of Finance, Public Policy and Ethics at St Mary’s University, Twickenham, comments: “The UK is unusual in the Western world in discriminating in such a marked way against single-earner couples or couples whose earnings are not equal. We probably tax families more severely than any other comparable country. It would not only be fairer to move to a tax system where tax rates were based on family income, it would remove the penalties on family formation that exist in our current tax and benefit systems. Furthermore, it would remove the penalties faced by couples where one member takes on caring responsibilities.”
Andrei Rogobete, Associate Director of the Centre for Enterprise, Markets and Ethics, comments: “Transferable tax allowances would provide a crucial lifeline to low-income and single-earner families that have been already struggling throughout the pandemic. It is an important step in making our tax system fairer and more purposeful in recognising the complex needs of families.”
Nigel Parker, Director of the Catholic Union, comments: “The health and economic crisis caused by Covid has put a strain on many family budgets and relationships. As we recover from the pandemic, we need to see a plan from the Government for how they intend to support families – easing the tax burden they face would be a good place to start. This is needed more than ever with the cost of living going up and Covid support at an end. Many families are already feeling the squeeze. Helping families keep more of the money they earn will not solve all of their worries, but it would be a very welcome first step.”
Read the letter to the Chancellor here: Letter to Rishi Sunak MP 14.03.22