Spending cuts must not affect tax reform focus, says IMA

Date: 23rd August 2010

The various spending cuts being implemented by the government in the post-recession era should not detract from the need for tax reform, it has been claimed.

According to the Investment Management Association (IMA), focusing too much on cuts could lead to a number of MPs overlooking the need for tax reform, the organisation has suggested.

In an interview with the Scotsman newspaper, Dougie Ferrans, chairman of the association, said: "Okay, let's have austerity and public spending cuts. However, at the same time we need to think through a viable long-term savings and investment regime. We shouldn't park that debate until the future."

The comments come shortly the after the government announced the creation of the Office of Tax Simplification, which has been charged with reviewing the UK's small business taxation environment.

Mr Ferrans added: "The reality is that to kick-start any rebuilding of the manufacturing economy on a meaningful scale there has to be a shift in both culture and appropriate incentives for investors."

Posted by Jacob Williams