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In a surprise to almost no one (except perhaps the government), this week we had confirmation that the UK economy slipped into recession at the end of 2023. Having endured years of unsustainable spending, dangerous levels of debt, a ballooning public sector, and a record tax burden to pay for it all, the chickens have come home to roost.
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But ministers canāt pretend they werenāt warned. For years weāve been highlighting that the cost of government crisis and ensuing tax burden were hampering growth. Most recently in January, our research clearly showed the damage a high tax burden has on growth.Ā
Responding to the latest economic setback, our chief executive, John OāConnell, was unequivocal: āTaxpayers will be right to blame the government for a mess largely of its own makingā¦ If ministers hope to restore growth in the long term they need to rein in spending and provide the tax cuts that individuals, families and businesses desperately need.ā
If Jeremy Hunt needs any pointers as to where a good place to start would be, our head of research, Darwin Friend, took to the pages of the Express to set out our stall. Darwin offers the chancellor three taxes ripe for cutting that would give a much needed boost to taxpayers: income tax, stamp duty, and inheritance tax. You can read his op-ed here.
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The week only got worse for the government from there, as it had to contend with two defeats at the ballot box. TPA wonks were quick to point out in the aftermath that voters donāt like it when governments hike their taxes, with a new research note revealing the huge electoral cost faced by governments that increase the tax burden. Our head of campaigns, Elliot Keck, gives a full rundown of the paper here.
With the budget just around the corner, possibly the last big fiscal event before the general election, your support is more important than ever. Can you chip in to our campaign and help deliver the lower, simpler taxes we need?
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Continuing our campaign for Jeremy Hunt to cut income tax and raise thresholds in his budget, our team descended on the treasury this week. Braving the wet and windy conditions, we made it clear that taxpayers deserve a break.Ā
As our campaign continues over the next few weeks, we need your help. Sign and share our petition here and weāll deliver it to the chancellor in advance of budget day. Make your voice heard by clicking here!
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TaxPayers' Alliance in the news
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Posters for London
A TPA investigation this week revealed that Transport for London (TFL) splashed out Ā£4.5 million on posters over the last three years. With many of the posters featuring needless, nannying advice, this hardly seems like the best use of money, particularly since they had their latest bailout back in December.
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Coming hot on the heels of Sadiq Khan announcing āvirtue signallingā new names for the overground, TPA researcher, Jonathan Eida, spoke to GB News, railing: āLondoners are tired of TfL's endless lecturesā¦ Transport bosses should focus less on preaching and more on punctuality.ā
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Spiralling costs of Scottish public inquiries
As previous TPA research has shown, in their quest for answers, public inquiries can all too often take years to complete and leave taxpayers with a hefty bill. The ballooning costs of ālessons to be learntā inquiries for Scottish taxpayers was exposed this week, as over Ā£120 million has been spent on the five most recent Scottish inquiries.
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Speaking to the Herald, our investigations campaign manager, Joanna Marchong, slammed the shocking sums: āItās too often the case that politicians and pen pushers seek to dodge the blame for their decisions through slow and costly inquiries. The most useful ālessons to be learntā are in value for money, efficiency and decisiveness.ā
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Cut through
With the current situation outlined in our lead story this week, it can sometimes feel like no oneās listening to taxpayers. While results may not always be immediate, our work is regularly cited by columnists and opinion writers. We are the go-to group when it comes to research on tax reform or wasteful spending.
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In the Telegraph this week, we were pleased to find waste that weāve uncovered featuring prominently in a comment piece from Annabel Denham. Highlighting our findings of Ā£10 billion given to global quangos, Ā£150 million in civil service golden goodbyes, and Ā£13 million for NHS diversity roles amongst others, our work is a vital resource in the battle against wasted money. Check out the piece here.
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12 things the government shouldnāt do: Institutions
In the first of a three part series looking at things the government shouldnāt do, our researcher, Callum McGoldrick, uses this weekās blog to look at some of the institutions weāre unnecessarily shelling out cash on.
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One example Callum cites is the FA, who received Ā£100 million from taxpayers in 2021-22. As callum notes: āIn the same period, the revenues of the 20 premier league clubs totalled Ā£5.5 billion, with the premier league itself also raising millions. It should not be the job of taxpayers to fund the most popular sport in the world. Rather, the largest organisations of the sport should take responsibility for the grassroots of the sport.ā Check out the full blog here.
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Benjamin Elks
Grassroots Development Manager
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