Under the Government’s plans, government spending will be around 40% of GDP in 2015. As an illustration of the impact further reductions in spending could have on their ability to cut taxes, it is worth considering as an example what scope there would be for tax reform if the size of government were reduced even further down to around 30%. This would free up close to £156bn giving the government plenty of room for tax cuts. This puts the paltry cost of many of the current tax cuts being fiercely debated by MPs of all stripes in quite a different context. The cost of the transferable tax allowance within married couples' allowance, for example, has been estimated as being around £3.2bn, while increasing the personal tax threshold to £10,000 has been estimated to cost around £16.8bn. Of course the dynamic effects of such cuts would then also create room for further tax cuts year, after year, after year.