Simple flat tax could replace 'fiscal maze'

Date: 17th October 2008

The 'fiscal maze' which the government has created should be replaced by a flat-rate tax, according to one financial journalist.

Gerald Warner believes that the UK's income taxation system has become bloated and bureaucratic, and would benefit from a singular, flat rate tax scheme.

Many European countries have already adopted such a system, including Serbia, Ukraine, Slovakia and Romania.

Mr Warner, writing for the Telegraph's website, commented: "Starting at a cautious rate, the savings from simplification of the tax system … and the boost to enterprise would accumulate more revenue than would be lost by the rates reduction."

By doing this, it would be possible for the chancellor to effectively reduce tax rates at every annual budget without taking a risk, while the system would also provide an anti-dote to a "tax-crazed, redistributist prime minister".

Recent research by the Organisation for Economic Co-operation and Development showed that the UK had one of the most favourable taxation climates in Europe.