Tories could move to a system of 'flat taxes' where everyone pays the same rate, Kemi Badenoch indicates
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A future Conservative party could move to a system of ‘flat taxes’ where everyone pays the same rate, Kemi Badenoch indicated yesterday. The Conservative leader said the idea of a simpler, flatter tax system was ‘very attractive’. But she said a future Tory government would first have to cut government spending dramatically to make a single rate tax system affordable.
![[Speaking at a rally against Labour’s plans to hike inheritance tax on family farms and businesses, Mrs Badenoch warned they could lead businesses to slash investment and jobs (file photo)]](https://i.dailymail.co.uk/1s/2024/12/16/22/93209895-14199253-Speaking_at_a_rally_against_Labour_s_plans_to_hike_inheritance_t-a-27_1734386638941.jpg)
George Osborne publicly flirted with the idea of introducing a ‘flatter’ tax system two decades ago, but never introduced it. Supporters of the idea argue that a single low tax rate can stimulate growth and boost tax revenues over time. A number of EU countries have adopted the idea including Hungary, Romania and Estonia, which Sir Keir Starmer will visit today and which operates a single income tax rate of 20 per cent.
![[Farmers protesting outside the Northern Farming Conference in Hexham, Northumberland against proposed changes to IHT. Ms Badenoch said a future Tory government would ‘reverse this tax grab at the earliest opportunity’]](https://i.dailymail.co.uk/1s/2024/12/16/22/93210235-14199253-Farmers_protesting_outside_the_Northern_Farming_Conference_in_He-a-28_1734386638942.jpg)
But critics have warned that operating a single rate in the UK would require a tax increase for lower earners while delivering a big tax cut for those on higher incomes. Speaking at a rally against Labour’s plans to hike inheritance tax on family farms and businesses, Mrs Badenoch warned they could lead businesses to slash investment and jobs and reduce the overall tax take for the Treasury.
Kemi Badenoch (pictured in London on Monday) said the idea of a simpler, flatter tax system was ‘very attractive’. Speaking at a rally against Labour’s plans to hike inheritance tax on family farms and businesses, Mrs Badenoch warned they could lead businesses to slash investment and jobs (file photo).
