With the fallout from the local elections continuing and recent polling largely being realised in the results, the prospects of a Labour administration after the general election seem to be growing by the day. With that in mind, their plans for office deserve close scrutiny as they’ll potentially have a massive impact on taxpayers.
One area that came to the fore recently is their proposed renationalisation of the railways, which also featured in Labour’s 2017 and 2019 manifestos. Nobody likes to be standing on a platform waiting for a delayed train and I often wince when I see how much my monthly ticket costs. But would public ownership really make things any better?
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Enter the TPA eggheads. In a new briefing note, our researchers have revealed that almost 60 per cent of delays are caused by the already nationalised Network Rail. Furthermore, three of the four largest subsidies given to rail franchises in 2022-23 were handed to renationalised railway services with £697 million, £602 million and £402 million given to ScotRail, Northern and South Eastern respectively. Investment in the industry has also increased dramatically since privatisation.
As our head of research, Darwin Friend, told the Daily Telegraph: “The understandable frustration of commuters with the railways is being used as an excuse for evidence-free policy-making, which will likely only make matters worse, given most of the delays are caused by the nationalised Network Rail.”
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Far from reviving the railways, renationalisation could well be a hammer blow. Our media campaign manager, William Yarwood, made this clear in an op-ed for CapX: “In a renationalised future, the progress that has been made in the industry since the 90s will be derailed. No one wants to see the railways and its passengers be put into second class for the foreseeable future.”
While it may be popular with the public, and there are undoubtedly problems with the current system, simply demanding more intervention from the state is not the answer. Greater competition on lines would be a far better solution that doesn’t saddle taxpayers with the bill.
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TaxPayers' Alliance in the news
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The worst council in England
If you’re a resident of Nottingham, you might want to look away now as the city council was this week named the worst run council in England. Data from the Office for Local Government, revealed the extent of Nottingham’s failings while also naming Torridge as the best performing.
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With some rays of light in local government, our investigations campaign manager, Joanna Marchong, told the Times: “the worst-performing councils should look towards the best to ensure that they adopt sensible and worthwhile changes.” Quite right!
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Reforming benefits
With the cost of disability and sickness benefits soaring, the TPA’s head of campaigns, Elliot Keck, appeared on Talk Radio with Petrie Hosken to discuss how the bill for taxpayers can be brought under control.
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As Elliot explained: “We’re expecting personal independence payments to double to £30 billion, 4 million people receiving these payments… If taxpayers are going to help fund your living arrangements, there should be a clear case that you need it.” Check out Elliot’s full interview here.
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HMRC complaints
Anyone who’s had to contact HMRC will know that it’s rarely a simple process. It therefore came as little surprise to find out that the tax office is getting 600 complaints each week. Over 34,000 complaints were made in 2023.
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John O’Connell, our chief executive, spoke to the Telegraph, blasting: “Taxpayers are at their wits’ end with the chaotic incompetence of the taxman. HMRC has the highly sensitive responsibility of collecting taxes, yet is veering from crisis to crisis, damaging confidence in their ability to fulfil their functions.”
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The sickly civil service
With Britain’s ‘sick note culture’ continuing to be a hot topic, in this week’s blog, TPA researcher, Jonathan Eida, has taken a look at how deep rooted that culture is in the civil service.
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As Jonathan explains: “The data shows that in 2022, the public sector sickness rate was 3.6 per cent. This was the highest absence rate in the public sector since 2003 and shockingly, it was higher than any recorded year in the private sector.” The government should lead from the front and get their own house in order!
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Bin collections are one of those key services residents expect from their councils but which all too often are seriously mismanaged.
Ratepayers in Uttlesford have been left with a £75,000 bill after the local council failed to get its waste operator’s licence renewed and rubbish went uncollected for two weeks.
Town hall bosses need to get a grip and stamp out this kind of unacceptable waste!
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Benjamin Elks
Grassroots Development Manager
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