Wednesday’s Budget has been hailed for relying on industry consultation which experts suggest will result in better policy.
MAC Consulting chief executive Mark Chilton says consultation periods allow flaws in proposals to be drawn out.
He says: “We have suffered particularly in taxation, but at a broader level too, from poor regulation and legislation in the past because the Government has not consulted with the outside world and has not revealed all the consequences.”
Last year, the Government launched a consultation on plans to reduce the annual pension tax allowance from £255,000 to £50,000 and Chilton says this provides a good example of consultation improving legislation.
He says: “As a result, add- itional legislation was published enabling individuals to meet potential high ann- ual charges from their pen- sion benefits rather than as a straight tax.”
Independent consultant Colin Jelley says late engagement with the private sector in the past sometimes made it difficult for policy to change.
He says: “If you are a minister and you announce your policy and some smart guy comes along saying actually the consequences are this, you are likely to think, well, I can see that is a stupid consequence but if I change my mind I am going to look a complete twit.”