Paul Ormerod, an Honorary Professor at the Alliance Business School at the University of Manchester, has stated that the government should prioritise improving public sector efficiency. He argues that tax increases are constrained by adverse behavioural responses and public resistance.
Ormerod notes that a new Cabinet is in place, with ministers looking to introduce new spending plans. He observes that various potential tax increases are being discussed in the media, alongside a recognition that UK government debt is already high.
He highlights that the Office of National Statistics (ONS) estimates show no overall growth in public sector productivity since 1997. Ormerod also points to examples of behavioural change impacting tax yields, such as the estimated £22m fall in tax revenues from the SNP government's 48p levy on high earners, according to a report by Dan Neidle.