UK tax policymaking – is it fit for purpose?

Key points

• The Treasury is responsible for ‘strategy and tax policy development’ and HMRC for ‘policy maintenance’.
• When the new structure was put in place by Gordon Brown it worked well. Is this still the case?
• Is HMRC subservient to HMT?
• Is HMT too big and expected to do too many things?
• The Northern Ireland Fiscal Commission recommends that the UK government considers developing a shared framework for fiscal devolution across the UK.
• Business rates need to be reformed.
• Is HMRC or HMT better placed to lead on making tax digital?
• If HMT is responsible for tax strategy there should be a greater number of professionally qualified tax professionals within it.

In 2005 the Inland Revenue and HM Customs & Excise merged to form HM Revenue & Customs (HMRC). As part of the merger the policy functions of those former departments moved to HM Treasury (HMT). HMT became...