Tory tax policy shocker

The shock is not just the discovery that the Torys have actually announced a policy about tax or, indeed, a policy about anything whatsoever, but that it makes sense to everyone; except, predictably, the government.

A few years ago, the Conservatives sponsored the Forsyth Tax Reform Commission, chaired by Lord Howe, the former chancellor and a lawyer. Others involved in the commission include Adam Broke who, being both an old school tax adviser and just plain old, has evidently been given the opportunity to bring his experience to bear on the new announcements. When it comes to the simplification of tax law, both protagonists have also participated in the non partisan Tax Law Rewrite Project, famed for spending two years in drawing up a highly respected consolidation of the tax law on earnings and pensions, only to see their good work trashed nine days later by the 2003 Finance Bill.

The proposals comprise three elements:

• The establishment of an Office of Tax Simplification, operating with a similar remit to that of the NAO, to report on ways of simplifying the UK tax code. The OTS would be comprised of not just politicians but, also, academics and practising professionals, and

• The establishment of a joint parliamentary select committee on taxation, and

• The introduction of a convention that any new technically oriented tax law changes will be proposed no later than by the pre-budget report preceding the publication of finance bill.

We suspect the first proposal may gain favour, but that the second will prove a toothless waste of effort given the Commons will still retain its Money Bills privileges.

It is, however, the desire, via the third proposal, to restore some certainty and prospection to the law which will prove the most interesting. The notion of consultation and the adoption of an annual legislative programme is, of course, nothing new and, indeed, most advisers will remember this was the norm in days gone by. With this year's Finance Act being the most ineptly enacted tax law in living memory, and with this year's issue of the extant tax legislation expected to be near on 11,000 pages, will it ever now prove possible to restore some semblance of order ? And, if it can be done, how long will it take for a new Conservative government then to change its mind ?