As ministers trumpeted the national insurance cut that came into effect last weekend and GDP stats for November were released on Friday, the economic picture was in sharp focus this week.
Although growth returned in November, reversing the decline seen in October, the threat of recession is still firmly on the cards. This sluggish performance has underlined the need to find ways to dial up growth.
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Refreshingly, both the government and the Labour Party have been getting in on the act of talking up tax cuts - and it looks increasingly likely that the spring budget will deliver some much-needed relief. But number crunching bureaucrats may yet rain on taxpayers’ parades with their increasingly questioned economic modelling.
With this in mind, our chairman, Mike Denham, has delivered another first-rate blog taking a closer look at tax cuts and forecasting by the Office for Budget Responsibility (OBR). With both parties likely to be making various tax pledges at the March budget and during the general election campaign, OBR forecasts will be centre stage. As Mike observes: “Tax changes still matter. Why? Because incentives matter. To that end, there is a lot of discussion about the OBR, and how it models tax changes when making its important forecasts that drive government policy.”
Delivering the TPA’s first op-ed of the year, our chief executive, John O’Connell, took to the pages of the Daily Express, and issued a rallying cry for the fiscal changes that we need. Blasting politicians who continue to ignore the elephant in the room - enormous levels of government spending - John said: “If they honestly want to cut taxes, then they must be genuine in getting spending under control and reforming public services so they are affordable in the long-term.” Click here to read John’s piece in full.
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Only by delivering spending restraint and bringing down the tax burden will our economy get the shot in the arm it so desperately needs. With the budget due in March and a general election looming, we’ll be holding politicians’ feet to the fire, making sure they put the interests of taxpayers first! You can support our efforts by clicking here to donate.
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TaxPayers' Alliance in the news
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Costs of benefits predicted to soar
As new forecasts revealed that spending on benefits linked to ill-health is due to hit £80 billion by the end of the decade, John appeared on TalkRadio with Petrie Hosken to discuss what this means for taxpayers.
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As John explained: “We’ve got a serious problem. We’re talking about 1 in 9 of the population being on some kind of disability or sickness benefit… These costs are not affordable in the long term.” Listen to the full interview here.
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Tax blow for Birmingham residents
As we warned in our recent briefing note, recently bankrupt Birmingham city council is seeking to hike rates for residents by 10 per cent for the next two years. Having failed to get a grip on their finances, local residents look set to be forced to pick up the tab.
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Elliot Keck, our head of campaigns, was scathing when he spoke to the Telegraph: “Taxpayers feel bitter about paying the price for councils that fail to balance the books. At a time when households are already facing significant financial pressures, elevated council tax rises are the last thing they need.”
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NHS jolly to Sin City
Despite being rated as ‘requires improvement’ by the care regulator, and with a £13 million deficit last year, the Princess Alexandra Hospital NHS Trust saw fit to splash out £58,000 sending 14 staff on a fact-finding jolly to Las Vegas!
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Raging, John told the Daily Mail: “This extraordinary bill is a slap in the face for taxpayers, as well as patients waiting for treatment. We keep hearing that there is no fat left to trim, but when healthcare bosses go on obscenely expensive trips to Sin City, those claims ring somewhat hollow.”
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The London Underground is under fire
With the London Underground celebrating its 161st anniversary this week, in our latest blog, we’ve taken a look at whether there is currently much to celebrate? With a crippling strike having been narrowly avoided there are many questions about where the £30 million promised by Sadiq Khan is going to come from. And that’s before mentioning the latest bailout for TFL.
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As the blog explains: “The best way to celebrate the anniversary of this revolutionary transport system would be to ensure that it is fit for the future. Instead of levying disproportionately high fare rises on commuters or going cap-in-hand to central government, the mayor should set his sights on the millions of pounds squandered to waste through gold-plated pay packets and unfair union practices.”
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Essex county council takes centre stage for this week’s example of taxpayers’ cash being wasted. It’s emerged that town hall bosses handed almost £500,000 to an internet prankster for “ digital consultancy and delivery via social media channels” during the pandemic.
As our digital campaign manager, Joe Ventre, said: “ Wasting taxpayers’ money like this is no laughing matter. While residents paid the price of the pandemic, the last thing they expected was their hard-earned cash to be spent lining the pockets of a comedian.”
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Benjamin Elks
Operations Manager
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