Thanks, but there's much more to do

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Autumn statement 2023
Taxpayers were hoping for much but expecting little in the build up to this week’s autumn statement. Having been told repeatedly that now was not the time for tax cuts, ministers changed their tune in the weeks beforehand when it emerged they had a lot of cash to spare. Where did they get all that cash from? Repeated, punishing tax rises. But that’s another story.
As regular readers will know, we've been relentless in our calls for Brits to be given some relief from the record tax burden. Having recently returned to the TPA, our new research director, Darwin Friend, took to the airwaves in advance of the chancellor’s speech, making clear what we thought Jeremy Hunt should do with all that fiscal headroom ([link removed]) . Appearing on Jeremy Vine’s BBC Radio 2 show, Darwin told listeners across the country: “Taxpayers are really suffering right now… if this isn’t the environment for the government to really help those working taxpayers to be able to afford the essentials they need, when is?”
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On the morning of the statement, TPA research fellow, Rory Meakin, set out our ‘wish list’ of what we’d like to see. Citing our recently updated Single Income Tax ([link removed]) report, the TPA’s blueprint for the tax system, Rory laid out 16 steps ([link removed]) for how Hunt could make a start delivering it.
The highs and lows
As it turned out, there were some concrete wins for taxpayers on Wednesday.
A 2p cut to national insurance from January and the abolition of Class 2 for the self-employed are certainly not to be sniffed at. Likewise, the abolition of the factory tax will be a welcome boost for businesses. To top it off, many will have raised a glass to the freezing of alcohol duties too.
As always seems to be the case though, the devil is in the detail.

Our team of researchers pored over the spreadsheets in the aftermath, and they came to the unpleasant realisation that the tax burden was still heading to a record high by the end of the decade.

In a rapid response, our chief executive John O’Connell called the package a “mixed bag.” In comments covered by the Daily Express ([link removed]) and elsewhere, John pointed out “Cuts to taxes for businesses and workers will be warmly welcomed, but the fiscal drag of frozen thresholds means the UK is still on track for an even bigger tax burden by the end of this decade.” Hear, hear!
TPA researcher Jonathan Eida fleshed out our views in a helpful blog explaining the good and the bad ([link removed]) in this week’s autumn statement.

There’s clearly more to do. With income tax thresholds still frozen, most taxpayers will still be worse off despite the national insurance cut. Corporation tax hikes have been kept in place. Until that tax burden is brought down, things will continue to be grim for taxpayers. And of course, not enough effort is being made to get spending under control. We’ll make sure the government knows that you’re not satisfied.

Help us make the case for the next round of tax cuts by chipping in here ([link removed])
One more thing...
Away from Westminster, we’re delighted to bring you an update on one of our local campaigns ([link removed]) from earlier this year.

When we got word that Arun district council were planning to splash £500,000 building their own luxury Airbnb, we knew it would be ratepayers left picking up the tab.
Teaming up with local residents, we took to the streets drumming up opposition and organising a letter to the council calling for the scheme to be scrapped. Hundreds backed our efforts and the plans have now been dropped.

A hard fought victory for local taxpayers.

The TPA are the only group standing up for taxpayers at both the national and local level.
If your council is behaving badly, get in touch. (mailto:[email protected]?subject=Council%20waste)

Benjamin Elks
Operations Manager

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