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Calamity Rachel
When the history of this Labour government is written, this week may prove to be a pivotal one.
After their weaselly justification last year for their hike to employersā national insurance, somehow suggesting that employers arenāt āworking peopleā, our beleaguered chancellor is preparing to use the Autumn budget for another devastating tax raid. And if the latest reports are to be believed, a full blown break of their manifesto commitment not to raise income tax is in the works.
How is it that Reckless Reeves finds herself in this situation? Well, the latest borrowing figures released on Tuesday provide a pretty good explanation. The UK borrowed an eye-watering £20.2 billion in September ([link removed]) , the highest for any September since 2020 during the height of the pandemic when swathes of our economy were shut down by government diktat. Meanwhile, inflation remained at 3.8 per cent, almost twice the Bank of England target.
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Despite her attempts to spread the blame around, claiming itās all the fault of the Tories, Nigel Farage, and Brexit, the reason our nationās finances are in such a parlous state is far closer to home. With the keys to the treasury in her clutches, the chancellor embarked on an extraordinary spending spree, caving to the pay demands of unions (howās that working out, Rachel? ([link removed]) ), overseeing the continued growth of the benefits bill ([link removed]) , and increasing departmental spending. All while hammering the productive private sector. The chancellorās chickens are coming home to roost.
And now we hear that sheās planning to hike income tax rates to plug the hole. Anne Strickland was quickly in front of the camera giving us her take which you can see here ([link removed]) .
Needless to say, John OāConnell was furious ([link removed]) when he read the reports: āA hike in income tax would be the ultimate betrayal by this rotten chancellor. Having ramped up borrowing and refused to countenance any moves to control spending, Rachel Reeves is now plotting to break Labourās manifesto pledge and raid the pockets of ordinary, hard-working taxpayers, in a vain attempt to fill the black hole they created in the national finances.ā
Following up with an op-ed for LBC ([link removed]) , John blasted: āInstead of cutting waste, streamlining Whitehall or reining in ballooning welfare spending, the chancellor is turning once again to the easiest option, squeezing the very people who get up, go to work, and keep the country running.ā
Weāll be fighting this tooth and nail but we need your help to kill off Reevesā latest crazy idea. Far from being the āiron chancellorā she likes to pretend to be, Rachel Reeves is prone to cave to pressure from her backbenches, just look at how quickly ministers caved over welfare. Which is why weāve launched our latest āwrite to your MPā tool ([link removed]) , so you can quickly and easily tell your representative exactly what you think of Reckless Rachelās proposal. Write to your MP now ([link removed]) and help us defeat Reevesā latest raid on our pockets!
Your support is needed more than ever. If you can, please click here ([link removed]) to support the TPA today!
Where Have All The Conservatives Gone?
For this weekās episode of a nation of taxpayers, Duncan Barkes is joined by Elliot Keck and Mark Littlewood, director of Popular Conservatism ([link removed]) .
They discuss why Popular Conservatism was set up, the current political landscape and the need for radical thinking to stop a borrowing and spending economic disaster. Mark also explains his political journey from former Chief Press Spokesman for the Liberal Democrats to his current position, via many years as Director of the Institute of Economic Affairs.
You can 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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Migrant freebies
Barely a week goes by without some new revelation of the benefits being dished out to illegal migrants and this week was no exception. As part of a Ā£260 million contract, those awaiting deportation at removal centres in Gatwick can enjoy arts and craft classes, English lessons, and IT lessons ([link removed]) . All this while centre bosses ārun diversity and equality meetings and appoint a diversity and equality advisor to produce reports.ā Utter nonsense.
William Yarwood was having none of it ([link removed]) when he heard, telling GB News: āInstead of prioritising border control and removals, taxpayers' money is funding luxuries for those who shouldn't be in the country in the first place. This money should be redirected to securing the border and enforcing removals.ā With perks like these on offer, perhaps itās no surprise the Epping migrant tried to return himself to prison ([link removed]) .
Tinkering at the edges
Last week, we brought you news that Rachel Reeves was considering some minor changes to the enhanced mobility element of PIP and the motability scheme, restricting the types of vehicles and ending the VAT and insurance premium tax subsidies.
While we were being reasonably generous to the chancellor and welcomed these moves - not something we generally have much cause to do - they did represent the bare minimum.
Giving a less sympathetic appraisal ([link removed]) was Jack Rankin MP, who used an op-ed in City A.M. to say: āRachel Reeves pledge to reform the absurd Motability scheme essentially amounts to giving alcoholics Peugeots instead of BMWs.ā Not an unfair assessment.
Jack also cited ([link removed]) the TPAās benefits dashboard ([link removed]) writing: āTaxpayersā Alliance analysis has shown that nearly 1.9m people are receiving the mobility component of enhanced Personal Independence Payment (PIP) ā up a staggering 142 per cent since 2019. Yet, over 90 per cent of Motability cars are delivered without adaptations at all. The Scheme is routinely covering people with ADHD, obesity and anxiety, and, astonishingly, brand new cars are being handed out to individuals with alcohol-related issues or histories of drug misuse.ā
Like our schools dashboard ([link removed]) , weāre bringing together data to give taxpayers real insight into how the services theyāre paying for are performing and itās great to see parliamentarians digging into the numbers too. Understanding the problem is the first step and this kind of transparency is key. Afterall, sunlight is the best disinfectant.
Stop taxing our tipples
New analysis from the Wine and Spirits Trade Association suggests that upcoming changes to alcohol duties, combined with national insurance changes, minimum wage increases, and a new āglass taxā will push up the price of wine and spirits in a hammer blow to pubs, restaurants, and hard-working Brits ([link removed]) who just fancy a glass or two in the evening.
Being no fan of sin taxes and someone who enjoys visiting his local, I was more than willing to call out this latest assault from the puritans in government ([link removed]) telling Express readers: āThe hospitality industry has been crippled by recent tax hikes, driving up prices and leaving customers having to dig ever deeper just to afford a drink. The Chancellor should immediately rule out further tax rises on alcohol and give some relief to hard-pressed businesses and taxpayers looking to enjoy their favourite tipple.ā
ESG and the drag on growth
Ministers may claim that growth is a priority for them but their actions donāt seem to match their words and economic growth can be described as anaemic at best. Jonathan Eida uses this weekās blog ([link removed]) to highlight the role of environmental, and social governance (ESG) guidelines for investors in suppressing economic activity.
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Jonathan rightly points out: āInvestors are losing confidence in ESG strategies as underperformance and weak demand expose the flaws of regulator-driven ESG policies. By using financial regulation to pursue environmental goals, the government risks distorting capital allocation and undermining returns. Regulators have strayed from their core purpose of ensuring stable, competitive markets, instead acting as instruments of climate activism.ā
Itās high time ministers removed these ridiculous regulations and let investors focus on supporting profitable businesses and delivering the economic growth we so desperately need. Have a read of Jonathanās blog in full here ([link removed]) .
War on Waste
Callum McGoldrick has wasted no time since taking over as our investigations manager. His first investigation has revealed that UK taxpayers are shelling out £88 million for contraception in Pakistan ([link removed]) .
On top of Ā£74 million promoting condoms, Ā£13 million is being used for āidentifying cultural barriers to modern contraceptivesā.
Ministers simply cannot claim Brits need to pay more when this is where their taxes are going!
Benjamin Elks
Grassroots Development Manager
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