There must be a reward for working. People facing a job offer, or in lower paid employment, must be certain they are better off taking the available work than staying on unemployment payments.

The transition to work should he facilitated. The income tax and social welfare systems should not create difficulties for people moving between employment and unemployment.

Tax on the lower paid should be reduced.

Every effort must be made, over time, to reduce or eliminate the tax wedge at lower income levels.

Tax and social welfare systems should be simpler. Complexity discourages movement between unemployment and employment. Tax and social welfare systems should be coordinated. Institutional frameworks must be found to ensure that this weakness is eliminated.

Tax exemption limits should be abolished.

This can be done by increasing personal allowances faster than exemption limits. However, the cost of this would be "substantial" and needs to be phased in.

No change to employers' PSRI. The idea of moving its basis from payroll to profits was rejected.

Health contribution and employment training levies be phased out. The reports notes this is a "low priority" given that no one with an income below £9,750 pays either levy.