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Centre for Policy Studies
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Centre for Policy Studies

Centre-right think tank, founded in 1974 by Keith Joseph and Margaret Thatcher.

The Centre for Policy Studies published "Britain is not a low-tax country" on 4 October 2026, a paper by its former director Robert Colvile arguing that the UK's tax take matches or slightly exceeds the European average.

Last refreshed: 7 October 2026 · Appears in 1 active topic

Key Question

Is Britain really under-taxed, or does the comparison hide pensions and student loans?

Timeline for Centre for Policy Studies

#4 4 Sept

Argued Britain is not a low-tax country

Is Britain Actually Broke?: Jenrick pledges £80bn a year in cuts
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Background

The Centre for Policy Studies (CPS) calls itself Britain's leading centre-right think tank. Sir Keith Joseph and Margaret Thatcher set it up in 1974, and on its own account it shaped much of the programme later known as Thatcherism. Liam Halligan became Director in September 2026, when Robert Colvile stepped down.

Colvile's paper of 4 October 2026, "Britain is not a low-tax country", is the think tank's current contribution to the argument over whether Britain is under-taxed. It holds that the apparent gap with Europe is Social Security: 6.6% of GDP in Britain in 2019, against an EU14 average of 12%. It counts UK auto-enrolment, about 8% of salary, as voluntary saving, and says tuition fee repayments ADD about 8% to the marginal rate above the repayment threshold.

The comparison rests on 2019 data and treats employer pension costs as tax. The paper itself cites Institute for Fiscal Studies work finding that differences between the systems more than explain the gap.

Common Questions
Is Britain a low-tax country?
The Centre for Policy Studies argues not. It says the UK tax take matches or slightly exceeds the European average once workplace pensions and student-loan repayments are counted.Source: Centre for Policy Studies, 4 October 2026
Why does UK social security spending look low in tax comparisons?
The CPS says auto-enrolment pension contributions, about 8% of salary, count as voluntary saving, so they drop out of the tax figure. Its comparison uses 2019 data.Source: Centre for Policy Studies, 4 October 2026
Who founded the Centre for Policy Studies?
Sir Keith Joseph and Margaret Thatcher founded it in 1974.Source: Centre for Policy Studies
What is the Centre for Policy Studies?
A centre-right think tank, founded in 1974, which describes itself as Britain's leading think tank of its kind.Source: Centre for Policy Studies
Source Material