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There was no let up in our campaigning over Christmas and New Year's Eve. Since the last bulletin the TaxPayers' Alliance has released two research papers and featured countless times in the national press. In 2021 we'll be campaigning harder than ever for fiscal prudence and eradicating wasteful spending.
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Scrap HS2 campaign gains new momentum
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The campaign to Scrap HS2 received a shot in the arm this week - a petition is calling on parliament to stop all work on HS2 and hold a new vote to repeal the legislation. I'm pleased to announce it has received well over 100,000 signatures which means parliament will debate the proposal.
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The pandemic has led to a sharp decrease in rail use as millions of people have adopted working from home. This trend seems likely to continue even after covid has passed. Begging the question, does the country need HS2? To date, no modelling of passenger numbers has been done to reflect the events of the last 10 months.
It is essential that the government reconsiders its plans and updates the project's cost benefit analysis. The TaxPayers' Alliance is still fighting to scrap HS2 and more news will follow in the coming weeks.
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Well accommodated: University vice-chancellors’ residences
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TPA research has revealed how universities are spending tens of thousands of pounds on luxury residences for vice-chancellors. Launched exclusively with student news network The Tab, this revelation comes as students are struggling in the midst of the covid crisis.
26 universities spent a total of over £500,000 on the associated costs of residences in 2019-20, with the top four alone accounting for over £250,000. At least four of the residences in question were worth more than £1 million.
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On top of renting the residences themselves universities also spent extraordinary amounts on staff, maintenance, cleaning, gardening, utility bills, council tax, insurance and even TV licences.
President of the Oxford Union, James Price, expressed his concern over the findings, "Students, stuck paying enormous tuition fees in spite of considerable disruption from covid, will be aghast at these revelations from the TaxPayers’ Alliance. University vice-chancellors are already well rewarded and valued for the important responsibilities and complex roles they hold, and shouldn’t receive extra stealth payouts on luxuries."
With rising tuition fees and repayment of loans languishing, the cost will also ultimately be borne by taxpayers as well as students. These universities must do the right thing and put an end to these all expenses paid pads.
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Online sales tax could cost households £150 per year
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In the wake of the Boxing Day sales we revealed that the introduction of an online sales tax would hit many households in their pockets. The government is keen to support the high street but a new tax is far from the best way to achieve this.
Expert analysis by the TPA demonstrated that an online sales tax of just 2 per cent would hit the poorest with an additional £22 tax bill each year, rising to £65 at six per cent. Were the rate to rise to 6 per cent, the average household would pay £151 in tax.
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Online orders are now the norm, and offer a lifeline for some of the most vulnerable in society. But high streets are struggling. As we've long argued the government must cut business rates to make local shops more competitive. With around 70 per cent of small high street retailers having a website, all an online sales tax would do is punish technological progress and business growth.
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The TPA regularly focuses attention on wasteful spending in the higher tiers of local government. What often slips under the radar is the finances of parish and town councils. In recent weeks I've received many emails from all over the country detailing profligate spending by these much smaller bodies.
Parish and town councils have a vital role to play in local matters but that doesn't mean they should take liberties with taxpayers' cash. In one instance we have seen a parish borrowing large sums from the Public Works Loan Board to fund commercial property investment. If the plan fails, ratepayers could see the parish precept double.
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Compared to district and county councils the sums are relatively small but it's the attitude to how taxpayers' cash is treated that matters. Across England's 10,000 plus parish and town councils millions of pounds is at stake. So if you know of a parish or town council wasting money please let me know.
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TaxPayers' Alliance in the news
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Golden goodbyes at the BBC
Once again the BBC has faced fierce criticism after it was discovered £26.6 million was spent making 310 staff redundant. Of those, 210 employees received a golden goodbye in excess of £100,000.
The TaxPayers' Alliance wasted no time in calling out this disgraceful use of licence fee payers' cash. Our chief executive John O'Connell told the Daily Mail, The Sun, Express and The Times, "The BBC claims it can't pay for TV licences for over-75s, yet is able to find tens of millions of pounds for golden goodbyes."
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Continuing the fight-back our digital campaign manager Joe Ventre was a guest on talkRadio to discuss the bumper payoffs. He told presenter Kevin O'Sullivan, "it feels like the BBC is indulging itself with licence fee payers' money" adding, "£26 million could have paid for over 150,000 TV licences for the over 75s." Click here to watch a clip.
Brits are fed up of being forced to the TV tax only to see it squandered on well-heeled execs and golden goodbyes. We will continue to put pressure on the government to put an end to the Beeb's archaic funding model.
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A law unto themselves
News of lavish salaries continued to roll in. West Midlands Police is advertising for a "fairness and belonging" director to "oversee improved inclusive culture" throughout its workforce. The £74,000 a year salary doesn't exactly scream value for money.
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Our media campaign manager Danielle Boxall didn't hold back in her comments to the Mail, “This force has been caught red-handed putting political priorities before policing. Taxpayers want their hard-earned cash spent on cops fighting crime, not cultural commissars preaching from behind their desks. Police chiefs now need to justify these costs or refocus their funding on the frontline.”
The TaxPayers' Alliance will continue to call out these 'non-jobs' and hold public bodies to account.
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Fat cat civil servants
It wasn't just BBC staff who enjoyed generous remuneration. Data from Scotland revealed that 40 civil servants received pay in excess of £100,000. In one notable example, a special advisor to Nicola Sturgeon received a pay rise of £20,000.
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Asked for comment by the Scottish Mail on Sunday, Danielle called for restraint, "Many will question if mandarins deserve these gold-plated salaries. All too often we see civil servants underperform at taxpayers’ expense. Given the current economic circumstances, the Scottish Government must try everything possible to cut its wage bill."
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The government must be bold and reform the BBC
Before Christmas it emerged that the government is set to shelve plans to reform the BBC. Despite widespread public support and promises made throughout the general election campaign last year - the PM looks set to u-turn on decriminalising non-payment of the licence fee.
As policy analyst Jeremy Hutton writes the government must not give up on reforming the BBC, "Support for decriminalisation and reform of the licence fee is high. The TPA’s recent survey found near unanimous agreement that fee payers do not think the BBC is good value, that it is biased and overpays its staff and, finally, that the licence fee should be decriminalised and abolished."
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The government seems to be giving up on reform at the very first hurdle. They must be bold and push for serious reform. The BBC’s funding model is analogue in a digital age. Ministers must be unrelenting on decriminalisation and ultimately scrap the BBC licence fee. Tens of millions of Brits will thank them for it.
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Could Nottingham council go bankrupt?
As I wrote for ConservativeHome last week fears are mounting over Nottingham City Council's financial position. Two recent reports laid bare the devastating effect of the council's failed energy company, Robin Hood Energy. It failed to make a profit in its short existence despite being funded with £43 million of public money.
With total losses estimated at £38 million, auditors said there was “institutional blindness within the Council." This very much tallies with a government report that notes the council's Section 151 officer issued repeated warnings but they were effectively ignored.
Just like Croydon, Nottingham is a glaring example of how not to use taxpayers' money. Other councils must learn from their mistakes. Click here to read the full story.
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Harry Fone
Grassroots Campaign Manager
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