A recent review co-edited by UCL'S Professor Richard Blundell has found that the UK tax system imposes unnecessary costs on the economy.
The Mirrlees Review, headed by Nobel Laureate Sir James Mirrlees, was put together by a team of international economists to identify the characteristics of a good tax system for any open developed economy in the 21st century; to assess the extent to which the UK tax system conforms to these ideals; and to recommend how it might realistically be reformed in that direction.
Professor Richard Blundell (UCL Economics) was one of the editors of the review and a co-author of the conclusions and recommendations.
The review concludes, among other things, that the UK system imposes unnecessary costs on the economy and reduces employment and earnings more than it needs to.
Professor Blundell said: We propose a clear long-term vision and direction of reform. While some of the reforms we recommend involve tweaks to current policy; others involve change which is radical and is for the longer term. There is no getting away from the political difficulty associated with some of the proposed changes. But there is also no getting away from the enduring costs of failure to reform.
Explore further: Why companies don't learn from their mistakes