Conservative Party conference: the future of Conservative tax policy
Research Manager and Head of Health
As an organisation, we specialise in the relationship between taxpayers, the state and public services, and how this relationship can work best. Tax is obviously a foundational enabler to the state working effectively, and when we talk about the future of tax, we are very much also talking about the future role of the state.
It is for this reason we were delighted to be joined by James Wild MP, the Shadow Exchequer Secretary to the Treasury, for a fascinating roundtable exploring the Conservative vision for tax.
Here are my key takeaways from the event:
- Tax simplification is a crucial enabler for innovation, as well as compliance
Participants around the table were keen to emphasise the importance of a simpler, more transparent tax system that both reduces distortions and compliance burdens. When the tax system is simple and predictable, people spend less time navigating rules as well as making it easier for people and businesses to see the benefits of their effort and investment. Tax simplification matters because it shapes incentives in subtle ways – if the system is too complex it can dampen people’s willingness to try something new. Simplicity helps make those rewards more visible and attainable.
- We cannot divorce the future of tax from the future of public services
Of course it is difficult to discuss a vision for tax without also thinking about a vision for its partner in crime: spend. It was clear that the real question underpinning the ‘spend’ half of tax and spend is how to ensure that the money raised is spent in ways that deliver effectiveness, impact, and long term value. Value for money, and in turn, potential tax reductions, is clearly factoring heavily into the Opposition’s future vision for tax. As the NHS confronts an historic productivity crisis, it was abundantly clear this would be a major focus.
- Don’t underestimate the role of tax in international investment
Tax policy plays a quiet but crucial role in attracting international investment. In sectors like life sciences, where research and innovation require long-term commitment, clear and competitive tax incentives can give global firms the confidence to invest and grow here. International investors don’t just look at regulation and talent, they also look at tax. A system that rewards research, supports risk taking and offers clarity over the long term can be a powerful signal that a country takes innovation seriously – especially in high value sectors like life sciences.