I wonāt sugarcoat it, this was a bad week for Brits. Barely a day seemed to go by without some new statistic underlining just how terrible the UKās situation is.Ā
So letās dive straight in.
Borrowing is up. Despite April seeing things like the national insurance rise taking effect, government borrowing was still higher than expected, coming in at a whopping Ā£20.2 billion! With a record tax burden, it is simply absurd that ministers canāt get a handle on their budgets and are continuing to add to our national debt.
But it didnāt stop there.Ā
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Inflation in April surged to 3.5 per cent, adding to the misery faced by hard-working households across the country. But Rachel Reeves canāt pretend that this wasnāt likely. As businesses struggle to stay afloat thanks to her tax hikes, prices are rising to compensate. Itās almost as if itās consumers who pay when taxes on businesses rise. Go figure.
And to top it all off, Keir Starmer couldnāt rule out even more misery for taxpayers. When given the chance at prime ministerās questions in parliament, the occupant of Number 10 spoke but gave no answer. Like a true politician words came out of his mouth but he didn't actually say anything. No wonder so many people have such little trust in our representatives. The prime minister had a chance to reassure taxpayers that there was no more pain to come and he refused to do so. Read into that what you will.
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As John OāConnell told the Daily Express: āTaxpayers will be rightly nervous to hear the prime minister refuse to rule out further tax rises this year. After clobbering small businesses and farmers, this government is now eyeing up a tax raid on savers and freezing the additional rate income tax threshold.ā
While ministers find the cash to dish out inflation-busting pay rises for public sector workers, those in the private sector, the part that pays for everything else, are now staring down the barrel of even more tax rises.Ā
The TPA will never shy away from confronting reckless politicians of all stripes. Weāll fight tooth and nail for taxpayers and call out any government that seeks to treat hard working Brits as cash cows. Enough is enough!
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Toby Young talks freedom of speech and Lucy Connolly
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For this weekās episode of a nation of taxpayers, podcast host Duncan Barkes is joined by William Yarwood, and Toby Young - Baron Young of Acton.
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Toby is founder and director of the Free Speech Union and an associate editor of The Spectator. They talk about the Lucy Connolly injustice, freedom of speech and the threat of a 'banter ban'.
You can catch this must listen episode of a nation of taxpayers on Apple Podcasts, Spotify, and YouTube.
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Itās finally happening. Perennial embarrassment, Gary Lineker, will bow out of the BBC later today when he hosts his last episode of Match of the Day. Auntyās top earning ātalentā, who enjoyed a salary of Ā£1,352,500 in 2023-24, found himself in hot water last week after sharing an anti-semitic post on social media and is leaving the beeb by āmutual agreementā. About time.
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There will be no last hurrah for Lineker who had been slated to front next yearās world cup. Which also saves payers of the TV tax a whopping Ā£800,000! Thatās the equivalent of 4,584 licence fees.
We wonāt be shedding a tear for Gary. Indeed, Elliot Keck put it perfectly when he heard the news: āLicence fee payers will be breathing a sigh of relief at the departure of Gary Lineker from their TV screens. For too long, Lineker has been an embarrassment for the BBC, flouting guidelines and ignoring the impartiality rules others are expected to follow, whilst receiving an eye-watering salary. To avoid a repeat of this sorry saga, the BBC must ensure that all of its staff and presenters adhere to impartiality rules and not let overpaid ātalentā break them with impunity.ā Quite right!
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The Tax Trap: Why Britainās Wealth Creators Are Giving Up
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Johnās been in high demand from podcasts recently (check out his appearance on the Peter McCormack Show here) and his latest appearance with Jasmine Birtles for an episode of MoneyMagpie isnāt one to miss.
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Together they discuss the UKās soaring taxes, stealth tax hikes, NHS spending, welfare costs, and how Britainās productivity crisis is being fuelled by a broken system. John also talks about the exodus of wealth from the UK and offers a compelling case for tax reform, smaller government, and restoring fairness to the economy.
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Is It Time to Rethink Ring-Fencing?
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When the financial crisis hit in 2008, ministers sought to protect retail banking services (the current accounts you and I use, that sort of thing) from the investment activities of major banks. Ring-fencing created legal separations between the two but, in this weekās blog, Jonathan Eida asks whether these rules are not more of a hindrance than a help and looks at how they might be reformed.
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Jonathan argues that a rethink of ring-fencing is overdue and that there are better ways to protect savers. As he writes: āTo be clear, no one is calling for a return to the regulatory laxness of the pre-crisis era. But a growing number of voices are asking whether ring-fencing, in its current form, is fit for purpose. The UK needs banks that are not just stable, but also agile - capable of funding innovation, supporting businesses, and responding to global competitionā¦ Unlike the chaotic collapses seen during the 2008 crisis, modern resolution regimes are designed to protect taxpayers from footing the bill - losses are absorbed by shareholders and creditors through mechanisms like ābail-ins,ā rather than government bailouts.ā Read Jonathanās insightful blog here.
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I mentioned at the top of this email that borrowing in April was more than Ā£20 billion. ThatāsĀ money that is going onto our enormous national debt which now stands at over Ā£2.8 trillion!
To put that debt figure into a little bit of context, thatās the equivalent of the lifetime tax contributions of more than 2.3 million taxpayers.Ā
Itās not a cheery note to end on so Iāll just say that I hope you enjoy the bank holiday weekend. |
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Benjamin Elks
Grassroots Development Manager
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