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Credit where it’s due
It’s not every week I get to say this but, Rachel Reeves might actually have had a good idea for once. Our beleaguered chancellor may have driven the public finances off a cliff with her insatiable desire for more public spending and more taxes but one sensible proposal looks like it might have caught her attention.
We’ve all become very aware of the outrageous generosity of the Motability scheme and how those in receipt of the enhanced mobility element of Personal Independence Payments (PIP) can use this benefit to acquire a new car, exempt from VAT, vehicle excise duty, and insurance premium tax (IPT). As our benefits dashboard ([link removed]) revealed, enhanced PIP isn’t exactly restricted to the highly disabled with it being awarded for conditions including food intolerance, irritable bowel syndrome, constipation, obesity, old age, acne, tourettes, writers’ cramp, alcohol misuse and drug use. Check out the situation in your area here ([link removed]) .

While there has been lots of talk in recent weeks about how Reeves might hike taxes there has been precious little in regards to curtailing spending. Clearly conscious of upsetting her own back benchers, the chancellor appears to be considering the bare minimum reforms of scrapping the subsidy that sees the VAT and IPT covered for Motability cars, adding £1.2 billion to treasury coffers ([link removed]) . She’s also looking at excluding high-end, luxury vehicles like cars from BMW and Mercedes ([link removed]) .
Elliot Keck rightly told Telegraph ([link removed]) readers: “It’s right that the Government is reviewing tax exemptions on Motability vehicles. Support for those who genuinely need help to stay mobile must remain but it’s clear that this scheme has drifted beyond its original purpose. There’s a big difference between helping disabled people get around and giving tax breaks for expensive cars and add-ons to those gaming the system.”

As the chancellor tries to fill the enormous black hole in the nation’s finances she created at her first budget, this obviously doesn’t go far enough. Tinkering with the system like this is a drop in the ocean considering our £2.7 trillion national debt ([link removed]) . That being said, clearly this demonstrates how our work, digging through data and making it easy to access and understand can have a real impact.

The budget may still be a way off but if Reeves makes these changes, she’ll have our support. Rachel, if you’re reading this, feel free to get in touch for more ideas on how to save taxpayers’ money. Our door is always open.

You can support the TPA’s next data dashboard by clicking here to donate ([link removed])
Is a Tory Bounce Back Possible?
Podcast host Duncan Barkes is joined by William Yarwood and Henry Hill, deputy editor of Conservative Home for this week’s episode of a nation of taxpayers.
Together they discuss the future of the Conservative Party, Kemi Badenoch's conference speech and whether the party's obsession with Margaret Thatcher is doing it any favours.

Listen to the latest episode of a nation of taxpayers on Apple Podcasts ([link removed]) , Spotify ([link removed]) , and YouTube ([link removed]) .
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VAT raid backfires
Who could’ve seen this coming? The government’s ideological VAT raid on private schools has seen almost 25,000 pupils forced out ([link removed]) according to the Independent Schools Council. Our newest researcher, Anne Strickland, ran through the numbers and took to X to explain what it all means for taxpayers. Anne’s thread, highlighting how this policy is now set to cost the treasury more than it will raise, went viral ([link removed]) and was seen by almost 770,000 people!
Showing just how important the social media game has become in the fight for taxpayers, Anne’s thread led directly to GB News picking up the story ([link removed]) and Shimeon Lee found himself in the studio speaking with Tom Harwood and Nana Akua.
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Shimeon hit the nail on the head ([link removed]) , explaining to viewers: “It’s a lose-lose for everyone involved. The parents will not get to send their children to the school that they want. The state sector has to absorb all these students coming in from the private sector. And when these students leave the private sector, they won’t be paying VAT on their school fees… It’s lost revenue and an additional burden for the state sector.”
A wealth tax is still a crazy idea
As we mentioned earlier, Rachel Reeves is desperately scrambling around looking for ways to raise extra revenue as she refuses to countenance any meaningful cut in spending. One idea that refuses to die is a wealth tax, despite the overwhelming evidence that wealth taxes fail wherever they’re implemented ([link removed]) .
Which is why William could be found in the GB News opinion section, spelling out once again ([link removed]) why they’re such a terrible idea: “The lessons from history and contemporary research are unambiguous. Wealth taxes fail to generate meaningful revenue, drive away capital and talent, and punish those who have worked hardest. With UK debt approaching 100 per cent of GDP and the tax burden set to hit 37.7 per cent by 2027-28, pursuing a wealth tax would be reckless. Until Labour confronts its spending addiction, taxpayers will continue to bear the cost of policies designed to extract rather than deliver.” Hear, hear!
TPA Debates: Digital IDs
When the prime minister announced plans last month to introduce digital ID cards for Brits, it certainly caused quite a stir in the country. Almost three million people have signed a petition opposing the scheme while ministers come out to bat for the proposal.
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It’s certainly been a hot topic for debate and the TPA office has had its fair share, hashing out the pros and cons of digital ID. For this week’s blog ([link removed]) , William goes head to head with Simeon on whether this marks an assault on our fundamental freedoms or just a practical way to standardise how we prove who we are. I’ll let you decide who won.

Have a read of the arguments here ([link removed]) .
A fond farewell
At the end of this week, we said goodbye to our superb investigations manager, Joanna Marchong. Over the last couple of years, Joanna has been leading the charge in our War on Waste, delivering hundreds of investigations and exposing billions of pounds of wasted cash.

From £500 million going to foreign farmers ([link removed]) and £52 million on EDI roles ([link removed]) in councils to £5 million for ‘parklets’ ([link removed]) and £650,000 for things like drag bingo and pronoun badges ([link removed]) , Joanna’s exposés have helped leave profligate politicians and bureaucrats with nowhere to hide. Thank you, Joanna.

Joanna may be moving to pastures new, but our war on waste continues. Stepping up to the plate is our very own Callum McGoldrick who’ll be picking up where Joanna left off. He may have some big shoes to fill but we’re in no doubt that he’ll do us proud. Keep your eyes peeled for Callum’s first investigations.

Benjamin Elks
Grassroots Development Manager

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