With barely-there growth, a 70 year high tax burden and a cost of living crisis, you would be forgiven for thinking ministers were doing all they can to get the UK economy moving again.Â
This week, over 100 of Britain's most senior business leaders signed a joint letter calling on the government to scrap the tax on tourism and bring back VAT free shopping for overseas visitors. Unlike many other countries, who recognise the benefits of encouraging tourism, the UK dropped its long-standing VAT free scheme in 2021.
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While this might seem like a minor issue, it acts as a massive disincentive to tourists coming to the UK over other, cheaper destinations. Restoring VAT free shopping for tourists could boost growth by ÂŁ4.1 billion and support over 76,000 jobs!Â
We warned against the changes back in 2020, which also saw the abolition of VAT free sales in airports for Brits travelling outside of the EU and could cost holiday makers an extra ÂŁ12 million. Our research at the time was endorsed by senior MPs and reported by the Daily Mail, which now spearheads this latest campaign.
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Our chief executive, John O’Connell, was happy to give the TPA’s support to the campaign to scrap the tourism tax, telling Mail readers: “In typical Treasury thinking, this levy looks good on the balance sheet, but hits the real economy hard by encouraging tourists and their wallets to go elsewhere.” Once again, ministers must be reminded that there’s no such thing as a victimless tax!
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TaxPayers' Alliance in the news
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Should we just accept being poorer?
There was widespread outcry at the beginning of the week when a Bank of England economist said we all need to accept being worse off.Â
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Our investigations manager, Elliot Keck, got to the heart of the issue when he told TalkTV viewers: “Ultimately we do face a situation in which we will get poorer and poorer - but this is as a result of deliberate policy choices to keep on racking up the spending and keep on racking up the taxes.” Hear Hear!
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In the office? There’s a foreign idea
With the horrific fighting in Sudan and the UK’s seemingly lacklustre response, it should perhaps come as no surprise to learn that over 60 per cent of desks in the foreign office were empty in the week leading up to the crisis.
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Speaking to the Sun, John rightly called out Whitehall’s work from home culture saying: “Civil servants have been caught napping yet again. Taxpayers are right to ask whether the work from home culture is to blame.” If officials are needed in person, ministers must demand they're back at their desks.
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Ethical defence
When they do make it to the office, it looks like actually working isn’t always at the forefront of mandarins’ minds. Civil servants in the Ministry of Defence have been given time off to attend a “Vegetarian and Vegan Network” conference.
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Elliot blasted the latest boners bunk-off in the Telegraph, explaining: “Whitehall’s priorities could not be more out of step with those of households up and down the country. Ministers should remind bureaucrats that they are public servants, not activists.”
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The Mayor's anti-car crusade will cost us all
In this week’s blog, David Taylor, a councillor from Havering, has taken a deep-dive look at Sadiq Khan’s hated ULEZ and just how much it might hit all London taxpayers, not just drivers.
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From the poorest who won’t be able to drive to work, to councils (and their taxpayers) who will have to pay to upgrade vehicles, as David says: “TFL will profit, of course, but the rest of us will lose out.”Â
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Cleaning windows may be a reasonable expense for many organisations, but keeping costs down should always be top priority. Sadly, Sunderland city council managed to spend over ÂŁ77,000 on window cleaning between December 2021 and February 2023 - seven times as much as nearby Newcastle, which only spent ÂŁ9,136!Â
Town hall bosses must wipe away these levels of waste and ensure they get value for money for local taxpayers.
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Benjamin Elks
Operations Manager
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