A group of prominent economists has urged UK prime minister-in-waiting Andy Burnham to implement a sweeping fiscal reform.
They propose replacing six major British taxes with a single consolidated levy.
The open letter, signed by experts including former Goldman Sachs chief economist Jim O’Neill, Kings College London professor Jonathan Portes, and New Economics Foundation chief executive Danny Sriskandarajah, pressures the incoming administration to resolve long-standing structural problems.
“Taxes in Britain are rising faster than in any comparable economy while public services deteriorate.
The country spends £100bn a year in debt interest, more than the entire defence budget and equivalent to half of NHS spending,” the economists pointed out in the letter.
The group noted that multiple administrations have struggled to address these fundamental financial weaknesses over the past decade.
“Seven prime ministers in 10 years have inherited the same challenge and failed to solve it for the same reasons: the problems are structural and systemic,” they added.
Prosperity 2030 Blueprint
The proposed fiscal blueprint stems from a report titled “Prosperity 2030,” published by the Institute for Global Prosperity at University College London.
The strategy advocates consolidating income tax, capital gains tax, inheritance tax, and national insurance contributions into a single “national contributions” levy applied to all forms of income.
Supporters estimate the adjustment could generate an additional £75 billion annually within five years. This could fund universal public services like free bus travel and school lunches.
“Prosperity 2030 is about rebuilding the systems that shape everyday life, work, care, housing, skills and the cost of living.
It is a plan for an economy that measures success by whether people can live secure, dignified and hopeful lives,” said Professor Dame Henrietta Moore, director of the Institute for Global Prosperity.
However, the aggressive economic projections have drawn skepticism from some tax experts.
“I don’t see where the numbers come from,” said Dan Neidle, a tax expert at consultancy Tax Policy Associates.
The proposed reforms also include replacing stamp duty and council tax with a nationwide 1% property levy distributed to local authorities.
Burnham is expected to secure the Labour leadership on July 17 and succeed Keir Starmer as prime minister on July 20.
