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Tipple taxes
On Tuesday, major changes will be coming in for how the humble pint (and every alcoholic drink) is treated by the tax man ([link removed]) . Whilst the reforms do represent a significant simplification compared to the existing system, as with most good ideas the government picks up on, their half-hearted efforts mean there’s still plenty of room for improvement.
Generally speaking, the changes represent a shift from taxing individual drinks to taxing the alcohol they contain, a simpler and fairer system that we’ve regularly called for ([link removed]) . The previous system saw wild variation in the way different drinks were treated, and whilst an element of this remains and the system could be simpler still (such as reducing the number and level of the rates), these reforms will hopefully make life somewhat simpler for producers and consumers alike.
These sentiments were echoed in our latest episode of TPA Talks, in which we sat down with Emma McClarkin, chief executive of the British Beer and Pub Association, to discuss (among other things) the effects of these reforms. You can watch the full episode of TPA Talks here. ([link removed])
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As our research fellow, Rory Meakin, set out in his paper looking at the long term challenges to the tax system ([link removed]) : “The government’s proposed simplification is welcome but it should go further and reduce the number of rates to three instead of six.”
Furthermore, the high rates under the new system risk continuing to hit those in the hospitality sector, such as pubs and restaurants. So much so that new reliefs on draught products have had to be introduced to cushion the blow, further complicating the system.
As we’ve argued many times before, lower alcohol duties ([link removed]) would be welcomed by pubs and punters alike. Whilst these latest reforms are welcome, ministers can go further still and call time on high alcohol duties.
You can back the work of the TPA today by clicking here to donate ([link removed])
Grassroots news
The TPA team touched down in Cardiff this week for the latest stop on the Town Hall Rich List roadshow. Council exec pay deals have been on the rise in the Welsh capital, with the most recent edition of the rich list ([link removed]) revealing that 17 members of senior staff received over ÂŁ100,000 of total remuneration in 2021-22 - increasing from 14 from the year prior.
Keen to hear residents’ thoughts, we set up camp in the city centre and took vox pops with taxpayers, asking whether they felt that they were getting value for money from their local council. As you can imagine, the feedback we received can be summarised as a resounding “NO!” We’ll be releasing the video on our social channels soon, so watch this space…
TaxPayers' Alliance in the news
Indefensible
Whilst the debate over funding for our military rages on, all sides can agree that the Ministry of Defence logging ÂŁ806 million in annual losses ([link removed]) is scandalous.
Our head of campaigns, Elliot Keck, blasted the sorry state of affairs ([link removed]) telling Sky News: "From huge payouts for bullying, to mistaken payments to the wrong supplier, it's clear that something is rotten at the heart of the Ministry of Defence. Ministers must ensure that these losses are not repeated."
Bus-ted
When South Wales Police hiked their share of council tax by 7.4 per cent, residents likely expected their hard earned cash to be focused on the front line. Sadly, their hopes are fading fast, as the Sun revealed that two PCSOs joined a drag performer named Coco Aine ([link removed]) on a bus tour around Port Talbot.
TPA policy analyst, Tom Ryan, put things into perspective ([link removed]) telling Sun readers: “With the police precept on the rise, hard-pressed taxpayers expect to see precious resources focused on fighting crime.”
Debunking development
As we reported last week, hard-pressed Brits will be shocked to learn that the government is set to send more foreign aid to India, despite the emerging superpower recently launching a rocket into space.
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Speaking to Dr David Bull, Elliot told TalkTV viewers across the country ([link removed]) : “The UK needs to rapidly wrap up this aid funding…Most of this money goes towards helping infrastructure in some of India’s poorest states. That’s the role of the Indian government.”
Return on investment
Taxpayers spend a pretty penny educating doctors with the reasonable expectation that they will go on to work in the NHS (when they're not out on strike, that is). This week the Mail revealed that a senior BMA member was actively "encouraging" doctors to leave the NHS ([link removed]) .
TPA researcher, Jonathan Eida, spoke for the country ([link removed]) telling the Daily Mail: “Taxpayers heavily subsidise the cost of medical degrees. Patients will now wonder whether this is good value for money, as doctors look for where the grass is greener.”
Blog of the week
Global Quangos Uncovered: WHO
In the second of the series on global quangos, Callum McGoldrick turns his attention to the World Health Organisation ([link removed]) , bemoaning the way in which this important institution has “become politicised, harming both its reputation and ability to provide the services required.”
In some pointed analysis, Callum argues that recent changes suggest that the body is seeking to “make national governments subservient to the World Health Assembly.” Good thing we at the TPA are running a campaign ([link removed]) to uncover exactly what is going on in these big multilateral organisations!
Click to read the blog in full ([link removed])
War on Waste
In some good news this week, Derby City Council have managed to save a whopping £200,000 using AI ([link removed]) . Darcie and Ali, the council’s new digital assistants, are on hand to help, and locals are certainly pleased with their performance. Quicker response times and extended hours have been provided by Darcie and Ali, all the while cutting costs to the local purse.
Its cost-cutting and time-saving potential ([link removed]) makes AI an easy win for public finances. Let’s hope these savings are passed on to local taxpayers.
Send me your local spending stories (good or bad) here (mailto:
[email protected]?subject=re.%20Weekly%20bulletin)
Benjamin Elks
Operations Manager
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