One small change Rachel Reeves could make to close tax loopholes and raise revenue

By Haomin Wang, Lecturer in Economics, Cardiff University
Alessandro Di Nola, Assistant Professor in Economics, University of Birmingham

Whatever decisions Rachel Reeves makes in her second budget as UK chancellor, it is clear that she needs to find lots of money. Some argue that the best and fairest way of doing this is to raise the taxes of the country’s wealthiest people.

Others feel that such a move will do further harm to the UK’s longstanding problem with productivity, by discouraging investment and entrepreneurship.

Economists describe this as the “equity-efficiency…

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