This report examines changes in the distribution of household incomes in the UK, and the determinants and consequences of recent trends. This includes analysing not only
changes in average living standards, but also inequality in household incomes and measures of income poverty and deprivation.
Following seven years of spending cuts following the financial crisis and associated record deficit, there is a growing call for the government to “end austerity”. Yet current plans imply more spending cuts as the government looks to reduce the deficit further. This observation – and an associated joint event with the Institute for Government – reflects on what ending austerity might mean in the context of the scale and shape of the planned fiscal tightening.
The simplest form of value added tax (VAT) – and the form often advocated by international organisations – is one with a broad base and a single (‘uniform’) rate. In practise, most countries exempt and/or apply lower VAT rates on certain categories of goods and services. In this note authors summarise the pros and cons of such ‘VAT rate differentiation’ that are highlighted in the economics and taxation literatures, paying particular attention to the applicability and relevance of each factor for low- and middle-income countries.
