A combination of higher public spending due to coronavirus and rising social care costs means the tax system is in need of a fundamental overhaul, says a report from the Institute for Government (IfG).

The institute says ‘the UK tax system has long been in need of reform to shore up the tax base and address long-standing weaknesses’ and that ‘the aftermath of this crisis could provide an opportunity to address these long-standing problems and improve the way in which we raise tax – and indeed, to move to a higher tax system if that is indicated by public desire.’