The sweeping proposals are intended to make the system simpler for taxpayers
Proposals for have been set out for major changes to tax rates. The suggestions to reform the HMRC system would affect National Insurance, capital gains tax, and inheritance tax.
Campaigners have launched a petition to Parliament calling for a major overhaul of the tax rules. The movement is urging for several taxes to be scrapped and replaced by a “universal income tax”. The message sets out: “We want the Government to reform the taxation system, replacing forms of taxation such as capital gains tax, VAT, stamp duty, inheritance tax, business rates, National Insurance and council tax, with a simple universal tax on income with the primary aim being to make tax simpler and fairer.”
If the petition reaches 10,000 signatures, the Government will have to issue a response. If the movement proves popular enough to reach 100,000 signatures, the issue will be considered for debate in Parliament.
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‘Deep societal problems’
The petition sets out why the person proposing it believes moving to a universal tax is necessary. The message states: “We believe growing inequality, stagnating growth, and a rising cost of living are fuelling deep societal problems across the UK.
“No political party has provided us with a clear, cohesive vision to fix our fundamental economic problems, nor have they fully addressed the growing sense of unfairness in the system. Small changes and additions to the system usually increase complexity and inevitably result in unintended consequences and loopholes. Instead the system needs radical change.”
There have been some key changes to the taxes listed in the petition since Labour came to power. The group pledged in its 2024 manifesto not to increase income tax or National Insurance, but it did raise the rate of National Insurance that employers pay in April 2025, up from 13.8 per cent to 15 per cent.
Tax increases coming soon
Major changes to inheritance tax are also coming in from April 2027, with unused pension pots to become liable for the tax. The Government also previously reduced the agricultural property relief for the tax, from April 2026.
Labour is also bringing in changes to council tax, with a new High Value Council Tax Surcharge to be brought in for properties valued at £2million or more. Prime Minister Andy Burnham said this reform was “right and fair” and that there are “big decisions” ahead with regard to the tax.
The notion of getting rid of National Insurance could be particularly contentious, as this is currently linked to your state pension entitlement. You build up how much state pension you can get by paying National Insurance contributions.
A person typically needs 35 years of contributions to get the full new state pension, which currently pays £241.30 a week, or around £12,550 a year. You can check how much state pension you are on track to receive using the state pension forecast tool on the gov.uk website.
