Draft tax framework 'needs to go further'

The draft tax framework for business is welcome, but what the government does in practice will be more important, an expert has claimed.

Andrew Hubbard, president of the Chartered Institute of Taxation (CIOT), noted his support for the document produced by those in power - calling the proposals "sensible and sound".

However, he stated his dismay that the new rules will only be applied to the development of policy "where possible" - with his organisation wanting them to apply automatically.

One issue that the CIOT has with the stance from Downing Street is that it has consistently pledged to make a simpler system, yet the UK now has longest primary tax code in the world.

The Trades Union Council recently called for a global transaction tax to be introduced, a move that could generate almost £100 billion a year to allow governments to reduce their budget deficits without causing serious problems to the financial markets.