With the budget now passed, we thought the threat of tax rises might take a week off. But not so! Research released on Friday from the Chartered Institute of Public Finance and Accountancy (CIPFA) reported that average council tax in England will exceed ÂŁ2,000 in the North East and South West of England, with some areas of the country facing bank-breaking rises. No sooner had the press release landed in our inboxes than cries went up from councils about the need for these unjustified rises. Â Â
Our TPA team was straight into action, ringing journalists to remind them that councils that plead poverty are often the first to be caught wasting money on pointless pet projects and mega salary bills. As I put it in a comment sent out before the day's newspapers had even gone to print: Â
“Council tax bills are going sky-high and feel like a kick in the teeth to taxpayers.
“Covid has put pressure on local authority budgets and caused catastrophe for many households’ finances. The last thing residents need are almost-automatic rate rises, meaning an even bigger council tax bill.Â
“With new fiscal powers a long way off, local authorities must do more right now to eradicate wasteful spending and stop these huge hikes.”
|
|
With our response reported in The Sun, policy analyst Darwin Friend was straight on the airwaves, telling TalkRadio’s Mike Graham that “taxpayers simply cannot afford tax rises of this size at this time, given the pressures that the covid pandemic has had on household budgets. Councils actually need to focus on getting their own house in order first.”
With the financial year soon coming to a close, that means our bumper Town Hall Rich List is only weeks away. Every year we document the senior salaries and bumper bonuses for council bosses, so voters can judge for themselves if their rate rises are justified... Watch this space!
|
|
|
Test and Trace: At what cost?
|
|
|
The other big story of the week for taxpayers was the long-awaited report from the Public Accounts Committee (PAC) on the NHS Test and Trace system.Â
This has become a heated topic on social media in recent months, so after our no-holds-barred takedown of government waste in the PPE scandal, we once again gave our view.
Â
|
|
With billions awarded for contracts without the usual tendering process, and top consultants being paid rates of up to ÂŁ6,624 per day, the rush to respond left taxpayers feeling ripped off, as normal practices went out the window.
Ultimately, it didn’t prevent further lockdowns; though as the report pointed out, there simply isn’t enough evidence yet to judge it’s effectiveness.
But if we are ever to get to grips with how much has been spent, and for what results, the need for a swift and decisive inquiry into the handling of the coronavirus crisis becomes clearer by the day! Click here to read our judgement in full.
|
|
|
TaxPayers' Alliance in the news
|
|
|
Royal insecurity
The headlines were awash this week with snippets from the Sussexes' bombshell interview. In one such instance, the Daily Mail poured water on the couple's claim that they are entitled to round-the-clock taxpayer-funded protection, as royals such as Princess Anne, Prince Edward and Sophie, Countess of Wessex, manage to do-without.
|
|
Approached for comment, John O'Connell was quick to rebuke the Duke. "The Duke and Duchess of Sussex can't have it both ways: either they're working royals with the obligations which that entails, or they're private citizens seeking independence."
Hear, hear!
|
|
Walsall councillors' double-whammy
My ConservativeHome column returned this week, opening with a particularly galling story from Walsall council. As councillors awarded themselves a pay rise of over £500, they also approved the decision to ramp-up local residents' rates by a whopping 4.99 per cent.
|
|
|
I was keen to express just how unfair this double-whammy of pay rises and tax hikes was:Â "Many households have suffered profound economic hardship in the last year. Councillors should consider their plight before awarding themselves lavish allowances."
|
|
Time for devolved budgets?
With the budget still fresh in everyone's minds, many taxpayers are left wondering why such important decisions that have a tangible impact on their lives aren't made closer to home. Writing for the Manchester Gazette on Wednesday, TPA policy analyst Darwin Friend explained how devolving taxes at a regional level would encourage more responsible spending from local authorities and help level-out regional inequalities.
|
|
"Given the impact the budget’s business rates and VAT cuts will have, imagine a situation where Manchester could decide to continue those cuts unilaterally" writes Darwin. "By pursuing a lower tax and more responsible spending agenda, we could see firms flock to our regions."
The TaxPayers’ Alliance has long believed regular rate rises wouldn’t happen if our regions were given more power over how they found their funding. What do you think?
|
|
In conversation with John Penrose MP
This week saw John Penrose MP join us for our latest webinar. Fresh off the heels of publishing his Power To The People report, Penrose was able to offer his expert insight into how we can improve the UK’s approach to competition and consumer issues.
|
|
Whilst Penrose’s outlook on this topic is one of optimism, it is clear that there is work to be done. “Business and the economy is all digitising. Everything is moving faster today than it was last year, and it’s certainly moving faster last year than it was five years before that.” Penrose explained.  “And yet, most of our competition rules are written in a pre-digital era.”
Penrose went on to describe the challenge of tackling the costs of red tape: “We’re not talking about changing the standards we expect in modern life, but what we are talking about is - how can you deliver those standards in a way which is cheaper, faster, quicker, more digital and just generally less bureaucratic?”
As we seek the path to recovery from this crisis and navigate the post-Brexit waters, we find ourselves in a unique position to make Britain a more competitive and pro-growth country. We can be glad that forward-thinking parliamentarians like Penrose are on the case!
|
|
UPCOMING: In conversation with Rt Hon Stephen Barclay MP
Next week promises yet another exciting event as we host chief secretary to the Treasury, Rt Hon Steve Barclay MP, for a chat with John O’Connell.
|
|
|
The chief secretary is responsible for government spending, and has often been called the "minister for saying no" to demands for cash from other departments. With the government spending like no tomorrow but the chancellor reportedly nervous about racking up huge debts, this event couldn’t be better timed.Â
Â
|
|
Croydon council: Testing our better angels
An excellent guest blog this week from Michael Swadling of the Croydon Constitutionalists, who tells us the terrible tale of the council’s descent to de facto bankruptcy.Â
Michael asks: Has the council learnt the lessons from its failure? In October, the new leader vowed change, but was not able to accept responsibility. Against this backdrop, Croydon’s hard-pressed taxpayers are bound to ask what has changed. Highly paid executives and well-remunerated councillors oversaw a fiasco that has left local households to pick up the tab for many years to come.
|
|
|
The story of Croydon council will abhor anyone who takes an interest in how their hard-earned money is spent, but more importantly, it should serve as a warning. As Michael says: “Our council wasn’t the first to go bankrupt, but it’s also unlikely to be the last - and we’re not just talking about the impact of covid. Fiscal mismanagement goes far deeper. It’s up to all of us to hold our local authorities to account for how they are spending, or misspending, our money.” We couldn’t have said it better ourselves. Click here for the full story!
|
|
Setting money alight
Yet again, local authorities are plumbing new depths when it comes to wasting taxpayers' cash. Edinburgh council has awarded a contract worth £170,000 to illuminate a disused gas holder. An events company called 21CC won the tender and will light up the structure as part of a "regeneration project" for the Granton area.
Anyone would think the last twelve months hadn't happened for Edinburgh's council bosses if they think this a good use of money. Given the need to rebuild public finances after the pandemic, this is possibly one of the worst ways to use public funds.
The TaxPayers' Alliance will continue to call out councils who can't keep a tight grip on the purse strings.
Â
|
|
Harry Fone
Grassroots Campaign Manager
|
|
|
|
|
