Stop talking tax and get reforming, says MAGGIE PAGANO

See more This is Money on Google - save us as a Preferred Source Updated: 03:37 EDT, 18 July 2026 Why is the debate about fixing the country’s bombed-out finances only ever on raising taxes? Along with the weather and football, talk about tax hikes has become another national obsession.Yet, as Thomas Tuchel’s decision to have England play defensively showed, it’s game over when you take the easy option and stop attacking.It’s the same with the chattering political classes and policy-makers, of all party colours. They are playing defensively, too.Raising taxes is a lazy way out of our fiscal problems, and will do nothing to solve deep-seated structural issues, be it fixing poor infrastructure or helping those on benefits back to work.Take the latest research from the University of York. Of the 15m adults in the UK who are obese, four in every 100 are likely to be unemployed. That’s more than 600,000 who are too fat to work. Even more damaging than the economic cost is the toll on their self-belief and their families. Lessons: As Thomas Tuchel’s decision to have England play defensively showed, it’s game over when you take the easy option and stop attackingWhen do you ever hear any politician ask how this can be so in a First World country? When do you hear them make a serious case for either spending cuts or reforms to our ballooning welfare state, measures which would improve productivity in the public and private sectors as well as the nation’s health? Or, more outlandishly, proposing tax cuts for small businesses or, heaven forbid, slashing inheritance tax?Sadly, most of those on the Right of the debate have been as complicit as Labour in buying into tax-and-spend policies.Yet, the warning lights couldn’t be clearer. If Britain keeps going in the same direction – with even more tax and spending, as Andy Burnham’s waffling first speech suggests – we are heading for the buffers.As the Organisation for Economic Co-operation and Development warned, the UK’s high tax burden is destroying competitiveness. Now the International Monetary Fund (IMF) advises against another spending binge, urging us to reduce the deficit.Interesting timing. The IMF’s red flag comes as the prime minister-in-waiting claimed he wants to be ‘authentically Labour’ again, rolling back time to the 1970s. Maybe he doesn’t remember the rats and rubbish on the streets or the devastating brain drain? Or the IMF bailout in 1976? After all, he was only six.The onus now is on those who believe in well-regulated free markets, reforming benefits, more incentives for small businesses and so on, to fight back against what promises to be the most Left-wing regime in decades.They need to show, not tell, how raising taxes usually ends up shooting yourself in the foot. Research from the Centre for Policy Studies (CPS) does just this by demonstrating how equalising capital gains tax with income tax will actually cost the Treasury £7.76bn.Expect more feet being held to the fire now that the respected economist and journalist Liam Halligan takes over as CPS director. It couldn’t be better timing. Let the war of ideas commence. We know we can play better.As tennis legend Martina Navratilova said on X after England’s defeat at the World Cup: ‘At the top level, playing not to lose loses most of the time.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you