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Mod cons for dons
This week we revealed that one in five universities is splashing the cash on luxury vehicles for vice-chancellors. ([link removed]) Despite paying their bosses six-figure salaries, some unis think it is acceptable to pay for their cars as well. But not just any old motors; vice-chancellors are driving everything from BMWs to Jaguars and even top of the line Mercedes.
The findings were unearthed by TPA researcher and student, Scott Simmonds. He discovered that in total, 29 universities spent £702,057 on vehicles for dons. In many cases they purchased more luxurious cars than those used to chauffeur government ministers!
When uni bosses are complaining about financial pressures it is deeply hypocritical of them to be swanning around in luxury limos. 80 per cent of the universities surveyed didn't spend anything on flash cars, so there's no excuse for the remaining 20 per cent.
In the last financial year £3.7 billion of public money was paid to English universities. Worse still the taxpayer could end up footing the bill for an estimated 47 per cent of student loans. It's time that higher education got a grip on waste at the top, cutting out the prestigious perks and finally putting the people who pay their salaries first. Students and taxpayers are fed up of poor value for money at UK universities.
Click here to find out how much each university spent on cars. ([link removed])
TaxPayers' Alliance in the news
We know that both government ministers and students were shocked to learn of the luxurious perks enjoyed by well-heeled scholars. Our research on vice-chancellors cars was covered in The Telegraph, Yorkshire Post and The Tab revealed the findings to its student audience all across the country ([link removed]) . TPA grassroots campaign assistant and student Kieran Neild wrote an excellent blog further analysing just how bad these extravagances are ([link removed]) .
And we didn't stop there! Our media campaign manager Sam Packer was even invited onto Mike Graham's talkRadio show to tell all about mod cons for dons. Mike couldn't believe that such well paid individuals weren't stumping up the cash for their own cars. Click here to watch the interview. ([link removed])
Avoiding a long-lasting recession
Writing in The Telegraph former MEP Dan Hannan issued a stark warning about the challenge of avoiding an economic depression ([link removed]) . He argues that the government must "push every button" and "tug every lever" to get the economy firing on all cylinders again. Dan has clearly listened to the TPA and is campaigning vehemently for one of our core policy aims, combining national insurance with income tax ([link removed]) . He writes:
"With unemployment already above two million despite [the Coronavirus Job Retention Scheme], the priority is to help firms retain staff. The surest way to do so is to scrap national insurance for both employers and employees. The TaxPayers’ Alliance has shown how it could be done.... We would thus end up, as we begin our recovery, with lower, flatter and simpler taxes – the surest recipe for growth."
We will continue to call on the government to adopt this vital tax reform for the sake of British businesses and their staff. There's more to come on our blueprint for recovery, so watch this space!
Blogs of the week
Taxpayers set their sights on defence procurement
We have looked before at how poorly taxpayers' money is spent on defending the realm. With a massive government review of defence and foreign policy now postponed due to the virus, Parliament’s Defence Select Committee has separately called for evidence regarding the UK’s defence industrial policy.
We seized the opportunity and provided a detailed response. Our researcher Darwin Friend has written a comprehensive analysis of our submission. He draws particular attention to the need to buy more "off-the-shelf hardware to maximise value for the taxpayer." Click here to read more. ([link removed])
Last tango for quangos
As our chief executive John O'Connell writes this week, "the performance of Public Health England has rightly come under the microscope". It's been too quick in the past to lecture the public about their diets rather than preparing for a pandemic. John explores five broad problems with quangos, from accountability to politicisation of public appointments.
He argues that "the quangocracy has expertly evaded real reform" and it's becoming harder to manage the ever increasing size of government. The TPA will not let failed PHE pen-pushers off the hook and we have some big things in the pipeline. The current administration must clean up the state and save taxpayers a tidy sum in the process. Read more here. ([link removed])
UBI: A shot in foot not a silver bullet
The current crisis has seen renewed calls by some MPs and celebrities for the introduction of a universal basic income. Such a system is designed to replace existing welfare schemes by giving everyone in the country a regular taxpayer funded income.
But as our political director James Roberts argues, while a nice idea it doesn't work in practice with a recent trial in Finland ending in disaster. Ultimately there is a gargantuan cost to the taxpayer and it doesn't encourage people into the workplace. James suggests that a better name for UBI would be a "universal dole payment." Find out why here. ([link removed])
Pulling the plug on council energy firms
As a former Bristol resident of nearly 12 years I recently learned that an energy company owned by Bristol City Council is up for sale, having cost ratepayers £37.7 million ([link removed]) . This came as little surprise to me as the council, no matter what political affiliation, has always performed woefully.
But it's not just Bristol, from Scotland to Portsmouth, councils all across the country have tried and failed to enter the highly competitive energy market. With mayor of London Sadiq Khan recently launching London Power I've examined just how much taxpayers' cash has been wasted in the process. Read the case against council energy companies. ([link removed])
War on waste
Cost overruns drive taxpayers around the bend
Thurrock Council has admitted that the costs of upgrades to the A13 have spiralled to a whopping £120 million ([link removed]) . Widening the road, which connects Essex with central London, was originally forecast to cost £79 million. However, we now know the project has overrun by a mind-boggling £41 million - more than half of the original cost!
Head of council regeneration projects, Cllr Mark Coxshall, did not seem phased by the colossal waste of taxpayers’ money. Rather than apologising, he tried to spin the disaster ([link removed]) by insisting it will create jobs. That may be true but there are no guarantees what the final bill will be.
Our research has shown that soaring bills for publicly funded projects ([link removed]) is an all too common occurrence, costing taxpayers £17.2 billion as of August 2019. Councils must ensure projects are managed effectively. Staff who underperform must be held to account to ensure ratepayers aren’t left picking up the tab.
Harry Fone
Grassroots Campaign Manager
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