Recent events have seen significant interventions by the government - and while necessary they must be temporary. Public finances have already taken a massive hit and will likely take many years to rectify. Politicians must resist the temptation to choose the easy option and raise already high taxes.
In addition to measures announced, the TaxPayers' Alliance published three further recommendations to help tackle the current crisis:
1. Divert the foreign aid budget to fighting the virus - In 2018 the UK spent £14.6 billion on Overseas Development Assistance. This money could be redirected to fighting the virus at home and abroad with all non-humanitarian development operations suspended.
2. Freeze council tax and focus money on frontline services - Planned council tax rises should be scrapped, with rates frozen to allow households to plan their budgets for the coming year. To ensure health and social care services are funded, councils should immediately suspend any non-statutory and low-level spending, such as hard copy council tax letters, council newspapers, canteen subsidies and councillor allowances and pensions.
3. Suspend Sunday trading restrictions - Supermarkets should be encouraged to open for longer hours on Sundays to reduce crowding and slow the spread of coronavirus. At a time when supermarkets are under immense financial pressure, including the need to maintain a steady supply of goods, this would make demand more manageable and help alleviate the core public health concerns.
The TaxPayers' Alliance will continue to be the voice of taxpayers and hold politcians to account in the coming months and years.
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Many thanks to everyone who has already used our handy tool to take part in the government's consultation on decriminalising TV licence evasion.
Please send a response if you haven't done so already, it takes less than a minute.
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TaxPayers' Alliance in the news
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Council tax rises
We sincerely hope the government heeds our calls to freeze council tax - it was revealed that bills are set to increase by an inflation-busting 3.9 per cent on average. Millions of households across the country are now seeing rates in excess of £2,000 per year.
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Our recommendations on council tax were picked up by the Daily Mail and asked for comment our chief executive John O'Connell said: "Emergencies such as this are exactly why we fight for what we do in normal times - so that we can pull together as a nation to see off a crisis. Households should be able to retain as much of their income as possible."
The TPA will continue to root out wasteful spending in councils all across the country.
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Sunday trading
Additionally, our policy idea to extend Sunday trading opening hours for larger stores was picked up by the Evening Standard. The Sunday Trading Act 1994 limits larger stores to just six hours of continuous trading. Lifting these restrictions could help ease the overcrowding seen at many supermarkets across the UK.
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John told reporter Jonathan Prynn, "the move is essential to help clear the backlog of demand at a time when online delivery slots are booked for weeks in advance."
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This week we have three excellent blogs for your reading pleasure. Our media campaign manager, Sam Packer has written a superb piece further exploring our recent research paper on taxpayer funded lobbying. He calls out The Equality and Human Rights Commission who between 2016 and 2020 "dished out just under £1.6 million to lobbying and political campaign groups." Click here to read more.
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In his blog TPA grassroots assistant Kieran Neild questions whether a large tax burden can go hand in hand with liberty. With the tax burden at its highest in 50 years, Kieran discusses what the positions of philosophers John Stuart Mill and John Locke would be, "It is on the principles they laid out that we must stand and fight to lower the tax burden and live independently from state interference." Click here to read more.
Finally, I recently interviewed a contractor in the financial services industry to understand how IR35 will affect both organisations and workers. It's a classic example of how government's good intentions lead to many unintended consequences. Read the interview in full.
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Cleaning up their act
At last the TaxPayers’ Alliance can report some much needed positive news! Three councils in Norfolk have joined forces in an effort to reduce the cost of bin collections. West Norfolk, Breckland and Norfolk District councils have pulled together and appointed a single provider to collect residents' rubbish.
Council officials believe this move will save local taxpayers’ money and provide a more “resilient and efficient service”. The shared contract allows the new provider of bin collections to operate across boundaries. This has reduced the legal and procurement costs - now shared by the three councils.
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We'll be keeping a close eye on this deal to make sure it really is as cost effective as they say it is but we very much welcome and commend this drive to make savings.
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Harry Fone
Grassroots Campaign Manager
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