Call for tax system overhaul to boost UK’s low birth rate

TAX should be cut in an effort to boost birth rates, campaigners have said.

The Marriage Foundation, a pro-family think-tank, is calling on the Government to overhaul the tax system in an attempt to reverse the fall in the number of people getting married and having children.

Current figures indicate a consistent downward trend in the number of young couples tying the knot, with a decrease of 16 per cent between 2010 and 2019.

Family-friendly initiatives are already in place in other parts of Europe. Analysis of policies in Hungary reveals that reduced income tax is offered to parents of two or three children, while those with four children are exempt altogether.

According to a Marriage Foundation report, ‘the consequences of this ten-yearlong family policy are striking’. It is believed fertility rates have risen from 1.25 to 1.59 births per woman in Hungary, just above the EU average.

Former Chancellor Sajid Javid insisted the public is ‘crying out for a fresh focus on the issue’. He said: ‘Every country in Europe recognises marriage in their tax system. OECD figures show that the UK is far behind other developed countries in doing so. Germany’s income-splitting system between a married couple is particularly compelling.’

Liz Truss has pledged to conduct an immediate review into family taxation if she becomes Prime Minister on September 5, saying: ‘Hard-working families are the bedrock of a stable society.

‘They don’t just look after themselves but also build communities, charities and even businesses.’