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 employers’ national insurance, somehow suggesting that employers aren’t ‘working people’, 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, 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 it’s all the fault of the Tories, Nigel Farage, and Brexit, the reason our nation’s 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 (how’s that working out, Rachel?), overseeing the continued growth of the benefits bill, and increasing departmental spending. All while hammering the productive private sector. The chancellor’s chickens are coming home to roost.
And now we hear that she’s 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.
Needless to say, John O’Connell was furious when he read the reports: “A 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 Labour’s 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.”
Following up with an op-ed for LBC, John blasted: “Instead 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.”
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We’ll be fighting this tooth and nail but we need your help to kill off Reeves’ latest crazy idea. Far from being the ‘iron chancellor’ 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 we’ve launched our latest ‘write to your MP’ tool, so you can quickly and easily tell your representative exactly what you think of Reckless Rachel’s proposal. Write to your MP now and help us defeat Reeves’ latest raid on our pockets!
Your support is needed more than ever. If you can, please click here to support the TPA today!
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Where Have All The Conservatives Gone?
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For this week’s episode of a nation of taxpayers, Duncan Barkes is joined by Elliot Keck and Mark Littlewood, director of Popular Conservatism.
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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, Spotify, and YouTube.
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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 £260 million contract, those awaiting deportation at removal centres in Gatwick can enjoy arts and craft classes, English lessons, and IT lessons. All this while centre bosses “run diversity and equality meetings and appoint a diversity and equality advisor to produce reports.” Utter nonsense.
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William Yarwood was having none of it when he heard, telling GB News: “Instead 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.” With perks like these on offer, perhaps it’s no surprise the Epping migrant tried to return himself to prison.
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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.
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Giving a less sympathetic appraisal was Jack Rankin MP, who used an op-ed in City A.M. to say: “Rachel Reeves pledge to reform the absurd Motability scheme essentially amounts to giving alcoholics Peugeots instead of BMWs.” Not an unfair assessment.
Jack also cited the TPA’s benefits dashboard writing: “Taxpayers’ Alliance analysis has shown that nearly 1.9m people are receiving the mobility component of enhanced Personal Independence Payment (PIP) – 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.”
Like our schools dashboard, we’re bringing together data to give taxpayers real insight into how the services they’re paying for are performing and it’s 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.
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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 ‘glass tax’ will push up the price of wine and spirits in a hammer blow to pubs, restaurants, and hard-working Brits who just fancy a glass or two in the evening.
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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 telling Express readers: “The 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.”
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ESG and the drag on growth
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Ministers may claim that growth is a priority for them but their actions don’t seem to match their words and economic growth can be described as anaemic at best. Jonathan Eida uses this week’s blog 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: “Investors 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.”
It’s 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 Jonathan’s blog in full here.
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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.
On top of £74 million promoting condoms, £13 million is being used for “ identifying cultural barriers to modern contraceptives”.
Ministers simply cannot claim Brits need to pay more when this is where their taxes are going! |
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Benjamin Elks
Grassroots Development Manager
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