Debating the Budget in parliament, Taylor said: ‘In the long term, the only way to guarantee this funding for the NHS, is to dedicate to the NHS, its own ring-fenced tax and we aim to bring forward proposals later this year to do just that.’
Labour backbencher and Treasury Committee member Jim Cousins was upbeat about the measures on VAT: ‘This Budget is a big step towards tax simplification – particularly in terms of the VAT changes.
‘Personally I am disappointed that he did not put tax and national insuranceon the same basis because that would be a major step towards tax simplification, but I think that is coming.
‘Of particular interest to accountants will be the review of the tax status of domiciliary requirements which could affect many wealthy people. That will have a huge impact.
‘Also of interest is the change to the tax regime of UK branches of multi-national companies. That too will have a big effect,’ Cousins concluded.