Alternatives to the Annual Tax Summary: Research explores how the government could communicate tax differently

  • Researchers recommend how the government could improve communication to citizens about how it spends the tax they pay
  • Sheffield Political Economy Research Institute (SPERI) report examines the government’s Annual Tax Summaries, which attracted controversy when they were first issued in 2014
  • An alternative to the Annual Tax Summary is proposed to counter anti-tax sentiment and to foster public confidence in the tax system

A new report by the Sheffield Political Economy Research Institute (SPERI) at the University of Sheffield proposes how the government could communicate differently to citizens about how it spends the tax they pay.

TaxAcademics from the University of Sheffield and University of the Arts London examined the government’s Annual Tax Summary – a document which provides UK taxpayers with a breakdown of how their Income Tax and National Insurance contributions are spent.

The summaries attracted controversy when they were first issued in 2014, when the then Conservative-Liberal Democrat coalition government was accused of manipulating welfare spending information to stoke anti-benefits sentiment in the context of austerity cuts. The policy was defended by the government as a way of increasing transparency.

In a report titled Communicating Tax, researchers Dr Liam Stanley, from the University of Sheffield’s Department of Politics, and Dr Rebecca Bramall, from London College of Communication, University of the Arts London, explore how such information could be communicated differently and present their recommendations through an alternative to the Annual Tax Summary.

Dr Stanley said: “Tax is the lifeblood of society. It funds public services and contributes to the formation of citizen identities and solidarities. While public opinion continues to favour the payment of taxes, this support is jeopardised by prominent figures and organisations who advocate for a low tax society.

“A better understanding of the role of communications in shaping people’s attitudes towards taxation will enhance the work of individuals and organisations who strive to counter anti-tax sentiment and to foster public confidence in the tax system.”

The report, published today (4 October 2018), draws attention to the political interests that inform fiscal transparency initiatives such as the Annual Tax Summary, and challenges common sense confidence in data visualisation as a tool for delivering transparency.

It questions forms of communication that monetise and individualise taxpayers’ contributions to public spending, and that set certain groups of people in tension with each other.

In response to each of these issues, the researchers offer recommendations for communicators who seek to champion the role of tax in society.

They recommend tax communicators should:

  • Challenge the perceived neutrality of tax transparency. Tax communicators should seek to identify accessible forms of communication that promote openness and accountability while challenging the logic of public sector inefficiency that transparency initiatives often serve.
  • Adopt a non-monetised framework of value. Tax communicators should express the value of tax in terms of the common good and what government spending does for society, rather than what it costs the individual.
  • Promote inclusive taxpaying identities. Tax communicators should avoid forms of communication that set certain groups (such as ‘taxpayers’ and ‘non-taxpayers’) in tension with each other.
  • Assert the interpretive status of data visualisation. They should encourage people to regard data visualisation as an interpretation of data rather than a statement of fact.

Researchers tested their recommendations through the development of a design intervention called the Ministry of Tax which presents an alternative to the Annual Tax Summary.

Users can enter their salary to see different and surprising data on public spending, including deeper scrutiny of the much-debated ‘welfare’ category of spending – drawing attention to the political decisions that are made when diverse elements of government spending are grouped under this category.

Dr Stanley said: “The Ministry of Tax doesn’t represent a definitive alternative to the Annual Tax Summary, but it does illustrate how some of the recommendations of our report might be applied.”

Researchers hope the project will contribute to further debate on future possibilities for progressive tax communications.

Dr Bramall added: “The report is intended to contribute to a broader emergent debate about communication, culture and the economy. Academics, artists, professional stakeholders, and campaigners can all play an important role, and we advocate more sustained collaboration and knowledge transfer between these areas of expertise.

“We hope that this report will enhance and sustain this debate, and that our recommendations will be of value to individuals and organisations who seek to champion the role of tax in society.”

Read the full report visit

Visit the Ministry of Tax

Additional information

Sheffield Political Economy Research Institute (SPERI)

The Sheffield Political Economy Research Institute (SPERI) is an academic institute based at the University of Sheffield. The institute aims to bring together leading international researchers, policy-makers, journalists and opinion formers to develop new ways of thinking about the economic and political challenges posed for the whole world by the current combination of financial crisis, shifting economic power and environmental threat

The University of Sheffield

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A member of the UK’s prestigious Russell Group of leading research-led institutions, Sheffield offers world-class teaching and research excellence across a wide range of disciplines.

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Contact

For further information please contact:

Hannah Postles
Media Relations Officer
The University of Sheffield
0114 222 1046
h.postles@sheffield.ac.uk