We must stop raising taxes. As is evident, higher taxes combined with sneaky and surreptitious ways of raising money to fund unreformed public services are the road to ruin.

So often political parties talk of cutting taxes or not increasing them, only to do the opposite once the election is won. In this context, the significant increase in the tax burden under the Conservatives is indefensible.

The tax system needs to be clear and easy to understand. It is essential that people know what they are paying in taxes to evaluate the value of the services they receive. If they desire greater provision, then they should expect to pay higher taxes, and vice versa.

Basic rate Income Tax and National Insurance Contributions should be replaced with an Education Tax and a Health Tax. These should initially be set at 8% and 20% of income respectively, resulting in a flat total tax rate of 28%, which is equivalent to the current combined rates of basic rate Income Tax and Employees’ National Insurance Contributions. A tax-free allowance of £10,000 will be applied for each child, although this will be tapered to zero at higher incomes. At no point does the marginal rate of tax exceed 28%. This approach will prevent the “cliff edges” and the punitive marginal tax rates present in the current system. The rates of flat taxes will be determined by the funding requirements of education and health policies. 

All adults over 30 should receive a simple “one-page” tax return, requesting confirmation of their employment income and disclosure of any additional income. In return, they will be automatically entered into a national tax lottery, with a weekly top prize of £10 million. Prize winners would undergo a full audit of their tax affairs before collecting their winnings. Those under 30 should be exempt from income tax.

Simplification will facilitate easier compliance and enforcement, reducing tax losses from the “black economy”. The tax code, now over 20,000 pages, should be condensed to just a few pages of A4. Loopholes, inconsistencies, anachronisms, complexities, unfairness, confusion, opacity, and uncertainty might benefit civil servants, politicians, lawyers, and accountants, but not anyone else. The tax year should follow the calendar year, starting on 1 January, not 6 April.