“This lack of rigorous scrutiny and weak evaluation culture means we have little idea whether tax expenditures are achieving their stated aims or whether they represent value for money compared with alternative policy measures. This should be of particular concern to the Committee given that many tax expenditures are uncapped with the cost highly concentrated among a small number of beneficiaries.”
In his remarks, Dr Roantree asked the Committee to consider the recommendations of the previous Government’s Commission on Taxation and Welfare – of which Roantree was a member – that spent substantial time examining this area. These recommendations included:
- Inclusion of sunset clauses
- Expansion of evaluation capacity
- Providing forecasts in annual reports to improve oversight.