Why UBI spells disaster
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The Universally Bad Idea
Before the high drama that dominated the end of the week, plans were announced ([link removed]) to trial a Universal Basic Income (UBI) in England for the first time. The idea has been put forward by the think tank Autonomy (who unsurprisingly also champion a four-day week ([link removed]) ) and would see participants given ÂŁ1,600 a month with no requirement to work, seek work, or do anything at all really.
Introducing a UBI is not a new idea and a taxpayer-funded trial is already underway in Wales. Its supporters argue ([link removed]) that it would help “boost employment and prevent poverty.” But the evidence simply does not bear this out. We’ve repeatedly highlighted the problems ([link removed]) and inherent unfairness ([link removed]) of such schemes and, as our managing director, James Roberts, explained back in 2020 ([link removed]) when reflecting on a much larger trial in Finland: “those given the money were no more likely to get a job than those who weren’t.”
As the name suggests, the UBI is intended to be expanded to all. With the huge costs associated with this, it was only natural that our team were soon called on to stand up for those who would be paying for such a scheme - you, the taxpayer. Speaking to the Daily Express, TPA policy analyst Tom Ryan blasted the barmy idea ([link removed]) : “Implementing this nationally would be extremely costly, compounding hardship for Brits already grappling with a 70-year high tax burden.”
As proponents of a UBI step up their campaign, we need your support to step up ours. These crazy schemes would massively increase public spending by essentially adding the entire nation to the dole. With near-record levels of public spending and the highest tax burden since the 1950s, these are proposals we can ill-afford. You can back the TPA today by clicking here to donate! ([link removed])
Council chaos
Bungling town hall bosses have been forced to issue a section 114 notice at Woking borough council ([link removed]) , effectively declaring bankruptcy. Having racked up over ÂŁ1 billion of debt through failing investment schemes, local taxpayers face reduced services and rising rates for years to come.
Responding to the news and issuing a warning to other councils ([link removed]) , our investigations campaign manager, Elliot Keck, made clear: “Councils should focus on delivering key services, not taking chances with taxpayers’ cash on high-risk property development.”
Though few in Westminster pay attention to these issues, council finances really matter. That’s why we produce work like our Town Hall Rich List, allowing local people to hold their councils to account. Our team will be in Sheffield this week for the latest leg of our Rich List roadshow, where the local council shells out over £1 million pound on seven senior staff.
Get in touch if you’d like to pop along and meet the team. (mailto:
[email protected]?subject=THRL%20Roadshow)
TaxPayers' Alliance in the news
No time like the present
With the prime minister finally talking about cutting personal taxes, the TPA office couldn’t have been happier. As always seems to be the case though, there’s still no prospect of relief for taxpayers anytime soon ([link removed]) . The tax cuts briefed out to the papers would only happen before the next general election.
Our chief executive, John O’Connell, made clear that Brits need the tax burden cut now ([link removed]) , not at some point in the next 18 months. John told City A.M.: “Instead of waiting for a general election giveaway, ministers should get on with meaningful tax cuts now.” Hear hear!
Tackling waste in Whitehall
When a report by the Public Accounts Committee highlighted huge waste and fraud across government, Elliot sat down with Jacob Rees-Mogg ([link removed]) on GB News, to discuss what can be done to secure value for money for taxpayers.
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In a wide ranging conversation, Elliot explained to Jacob and viewers across the country: “The public sector, and particularly the political element of the public sector, has a particular problem with the sunk-cost fallacy… We do need to look at mechanisms to ensure that the people that made decisions at the start have some level of accountability in the years going forward.” You can watch the full conversation here. ([link removed])
Expensive inquiries
Like the recently started covid inquiry, public inquiries serve an important role seeking out answers on some of the big national issues. Naturally, they come with a cost. Analysis by the Times shows that ÂŁ110 million is being spent on these inquiries every year ([link removed]) .
This echoes previous TPA research ([link removed]) showing three government departments spent over £300 million between 2015 and 2020. While public inquiries must be detailed, they are typically slow moving and take many years to complete. Speaking to the Times, our media campaign manager Conor Holohan made the incredibly important point ([link removed]) : “All too often politicians kick difficult decisions into the long grass with slow inquiries at a huge cost to taxpayers.” Ministers must ensure that public inquiries are decisive as well as thorough.
Blog of the week
Will AI save the NHS?
With the NHS seemingly perpetually in crisis despite commanding a colossal £160 billion budget, in this week’s blog, Joe Ventre, our digital campaign manager, has taken an in-depth look ([link removed]) at whether AI holds the key to the NHS’s salvation.
As Joe rightly observes: “It’s unlikely that artificial intelligence is going to fix the ceiling tiles, or make hospital visits a more pleasant experience anytime soon. But with the right implementation, a digitally-transformed NHS could pave the way for the world-leading service that hard working taxpayers deserve.”
Click here to read this fascinating blog in full. ([link removed])
War on Waste
Despite what Extinction Rebellion and Just Stop Oil would have you believe, achieving net zero has been at the heart of central and local government policy decisions for a number of years. Of course, very rarely are the actual costs of meeting the target mentioned.
Norfolk county council have recently approved plans to spend a whopping £83 million ([link removed]) in a bid to achieve net zero carbon emissions by 2030. As John told the Eastern Daily Press: “Having just been hit with a huge council tax rise, locals will worry that they will be asked to dig even deeper to meet the costs of net zero.”
Send me your examples of wasteful public sector spending (mailto:
[email protected]?subject=re.%20Wasteful%20spending)
Benjamin Elks
Operations Manager
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