Target pensions or welfare, not banks, IMF tells John Healey
Source: The Guardian ·
Supporters of planned tax, however, say banks were bailed out by taxpayers during the financial crisis and can afford to pay more nowJohn Healey poised to raise taxes on banks in budgetThe International Monetary Fund has urged John Healey to target savings on pensions and welfare, instead of taxing Britain’s banks at the budget later this month.Helge Berger, deputy director of the IMF’s European…
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The International Monetary Fund has urged John Healey to target savings on pensions and welfare, instead of taxing Britain’s banks at the budget later this month. Helge Berger, deputy director of the IMF’s European department, was asked about bank taxes after the Guardian revealed Healey plans to tap the sector for additional revenue. Berger replied that given the UK’s current high tax-to-GDP ratio, it might be better to “put the emphasis” on cuts. He said if additional tax revenue were needed, reforming property taxes or VAT might be a good place to start. He added: “Ultimately, with taxes roughly at 40% of GDP – historically, for Britain, a high number – then of course balancing these measures on the fiscal [spending] side, doing a bit more there, makes good sense.” As examples, he highlighted the pensions triple lock – which Labour has already said it will reform – and “better targeting [of] social benefits”, adding: “I think that’s where you would put the emphasis, rather than…