Christian groups urge Chancellor to ease tax burden on families

Rishi Sunak - official portrait

Three Christian organisations have called on the Chancellor to make the tax system fairer for families ahead of the Spring Statement later this month. The Catholic Union of Great Britain; the Centre for Enterprise, Markets and Ethics; and the Benedict XVI Centre for Religion and Society, St Mary's University, Twickenham have called for action from Chancellor of the Exchequer Rishi Sunak in light of rising inflation and soaring energy prices.

In their joint letter to the Chancellor, the three organisations have called on Rishi Sunak to set up a commission to look at ways of easing the tax burden on families.

The three organisations called on the Government to implement fully transferable tax allowances and bands ahead of the Autumn Budget last year so that all families with the same income pay the same amount of tax regardless of whether they are single-earner or dual-earner households.

It is hoped that a new commission would be able to consider this proposal in more detail - along with other measures to help families keep more of the money they earn - and come up with a set of actions for the Treasury to take forward.

The intervention from the three organisation is intended to help bring about a system whereby all families pay the same amount of tax whatever the split of income between individuals within the family.

The Spring Statement is due to take place on Wednesday 23 March.

Professor Philip Booth, Professor of Finance, Public Policy and Ethics at St Mary's University, Twickenham, said: "The UK is unusual in the Western world in discriminating in such a marked way against single-earner couples or couples whose earnings are not equal. We probably tax families more severely than any other comparable country. It would not only be fairer to move to a tax system where tax rates were based on family income, it would remove the penalties on family formation that exist in our current tax and benefit systems. Furthermore, it would remove the penalties faced by couples where one member takes on caring responsibilities."

Andrei Rogobete, Associate Director of the Centre for Enterprise, Markets and Ethics, commentsed: "Transferable tax allowances would provide a crucial lifeline to low-income and single-earner families that have been already struggling throughout the pandemic. It is an important step in making our tax system fairer and more purposeful in recognising the complex needs of families."

Nigel Parker, Director of the Catholic Union, added: "The health and economic crisis caused by Covid has put a strain on many family budgets and relationships. As we recover from the pandemic, we need to see a plan from the Government for how they intend to support families - easing the tax burden they face would be a good place to start. This is needed more than ever with the cost of living going up and Covid support at an end. Many families are already feeling the squeeze. Helping families keep more of the money they earn will not solve all of their worries, but it would be a very welcome first step."

More information on the joint submission ahead of the Autumn Budget last year can be found here: www.catholicunion.org.uk/2021/10/christian-groups-call-on-chancellor-to-deliver-for-families

Read the full text of the letter below:

Dear Chancellor,

We are writing to you ahead of the Spring Statement to call for urgent action to support working families.

These are difficult times for households across the country. Inflation, combined with soaring energy prices, have turned family budgets on their heads.

While many of the factors contributing to these pressures are out of your control - not least the terrible situation in Ukraine - there is at least one important area where you can make a difference, and that is tax policy.

As you know, we wrote to you ahead of the Autumn Budget last year to outline a number of changes to the tax system that would make it fairer for families - with the ultimate objective of moving to a system whereby all families paid the same amount of tax whatever the split of income between individuals within the family. Such a system is common overseas. We remain happy to meet you, or one of your Ministers, to discuss our proposals.

Following the Budget last year, the Resolution Foundation estimates that the tax burden is £3,000 higher per family than when Boris Johnson became Prime Minister. We urge you to use your Spring Statement to take action to support families and reduce the tax burden they face.

We appreciate that the Budget is the appropriate time to make any major changes to tax and spending policy, however there are steps which the Treasury can take now to help families.

We urge you to set up a commission to examine the tax burden on families. This should include people with appropriate expertise and representatives from civil society. Our organisations would fully support the work of such a commission.

You have previously spoken about your desire to see taxes go down, and the Conservative manifesto commits to making Britain the greatest place in the world to start a family. We urge you to turn these words into action by setting up this commission.

The need to support working families in this country is greater than ever.

We look forward to hearing from you.

Nigel Parker
Director
The Catholic Union of Great Britain

Professor Philip Booth, Professor of Finance, Public Policy and Ethics
St Mary's University, Twickenham, London

Andrei Rogobete
Associate Director
The Centre for Enterprise, Markets and Ethics

LINK

Catholic Union - https://catholicunion.org.uk/