Rachel Reeves must overhaul the UK’s complex tax system if Labour is to deliver on its growth ambitions, a leading international body has warned.
The Organisation for Economic Co-operation and Development (OECD) said simplifying the system is essential, arguing current complexities hinder employment, suppress growth, and create significant compliance costs.
It highlighted the UK’s intricate VAT regime — including disputes over items like Jaffa Cakes — as a key issue.
The OECD also urged reforms to council tax, recommending bills be based on updated property valuations. However, this would be politically sensitive, potentially driving sharp increases in areas such as London where prices have surged since the last assessment in 1991.
It has previously called for the abolition of stamp duty and changes to the pensions triple lock to help stabilise the UK’s public finances.
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