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What COVID-19 means for the future of tax


With the pandemic increasing pressure on public finances, could this prompt overdue discussions on tax reform? ICAEW s Head of Tax Frank Haskew and independent adviser Martin Wheatcroft reflect on recent announcements and challenges facing the Chancellor.
With the UK’s deficit set to increase to £2.5trn by 2023, the fact that tax revenues do not cover public spending is starker than ever. However, the problem of balancing the books far predates COVID-19.
An aging population coupled with funding and tax administrative decisions made many decades ago have meant that the gap has been slowly but inexorably widening. Frank Haskew, Head of Tax at ICAEW, says: “Since the turn of the century, we have been running deficits almost every year. The fact is that we’re not raising enough tax meet to our day-to-day spending commitments.” ....

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NAO says £190bn Defence Equipment Plan 2020-30 is unaffordable


NAO says £190bn Defence Equipment Plan 2020-30 is unaffordable
21 January 2021: The National Audit Office (NAO) says additional funding provided in the November 2020 Spending Review will still not be enough to plug shortfalls in the 10-year Defence Equipment Plan.
The NAO has issued a report on the £190bn Defence Equipment Plan for the 10 years from 2020 to 2030. For the fourth consecutive year, the NAO reports that the plan by the Ministry of Defence (MoD or the Department) to procure and support defence equipment is unaffordable.
The Equipment Plan is a rolling 10-year set of programmes that currently comprises £87bn in planned procurement, £97bn in support costs and £6bn for contingencies, with the total of £190bn representing a £9bn increase over the previous year’s plan. Excluding contingencies, the plan includes £44bn for the Defence Nuclear Organisation, £35bn for Air Command, £33bn for Army Command, £31bn for Navy Comm ....

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