High tax and regulation causes rise in shadow economy

Philip Booth appears on BBC Radio 2

Philip Booth appeared on BBC Radio 2 to discuss the new IEA research on the shadow economy.

Mr Booth argued that high tax rates and rising levels of regulation cause the shadow economy to grow. The shadow economy is worth £150 bn or 10pc of the UK's GDP. The research modeled the causes of the shadow economy by looking at variables that can be measured such as the amount of cash that circulates in an economy relative to the amount that is in bank accounts.

Listen to the full programme here. Segment begins at 28.23.

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