A big thank you to everyone who joined us on Wednesday afternoon for a fascinating discussion with Steve Barclay, chief secretary to the Treasury. In a wide-ranging conversation with the TPA's John O'Connell and Mike Denham, Steve stressed his desire to get the economy back on track again.
But of particular note was his determination to reinstate the cap on public sector exit payments. Readers will recall that the cap was withdrawn - just weeks after it was implemented - due to pressure from Whitehall mandarins and union bosses.
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Speaking directly to TPA supporters, Mr Barclay said the issue was "close to his heart" and within the next three months there will be a "clamp down" on severance payments.
His comments were picked up in today's Sunday Mirror and Sunday Telegraph and in response, our chief executive John O'Connell welcomed the news, "It was encouraging to hear the chief secretary tell us that he too has been alarmed by public sector payouts and remains committed to a cap. Taxpayers won't forgive ministers if they're forced to wait another five years for an ineffective and incomplete cap."Â
It's great to see our efforts are paying off. The TaxPayers' Alliance is having a direct impact on government policy. But the job isn't finished yet! Please sign our petition to reintroduce the cap.
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Independent Scotland would need to double basic rate of income tax
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New research by the TaxPayers' Alliance has found that an independent Scotland would need to raise the basic rate of income tax to 46 pence in the pound to pay for its current level of spending. Written by TPA chairman Mike Denham, his detailed analysis reveals the current rate of Scottish spending (£11,247 per head) could not be supported without huge tax rises or a significant reduction in public spending.
His findings have already been extensively covered in today's Scottish Mail on Sunday. Furthermore, were Scotland to leave the union it may be liable to take a share of existing UK debt of around ÂŁ300 billion - twice the size of Scotland's GDP.Â
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International comparisons don't make for good reading either. Scotland's general government financial deficit has recovered more slowly than countries that were worse affected by the 2008 crash. Nor are North Sea oil revenues a get of jail card. Scotland ran a deficit even when oil prices exceeded $100 per barrel but the oil fields are fast depleting.
Considering 44 per cent of Scottish income taxpayers already pay higher rates than elsewhere in the UK. Further increases on the scale required would punish taxpayers and seriously undermine economic growth.
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The TPA doesn't take a position on Scottish independence but taxpayers expect their leaders to get to grips with the reality of Scotland’s fiscal position.Â
An independent Scotland would start life with new economic freedoms, but also retain a fiscal deficit considerably larger than any other European country. Politicians need to have an honest debate about public finances, whatever their position on the Union.
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Performance-related pay for politicians
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In October last year, the TaxPayers' Alliance led the charge after news that MPs were to receive a pay rise of ÂŁ3,360. Under a wave of pressure from TPA supporters, parliamentarians eventually rejected the pay rise.
But we didn't stop there. Using a clever tool on our website, thousands of people submitted to a consultation on MPs' pay. We argued for a new system. Pay should be linked to GDP per capita - meaning if Brits get poorer, so do politicians.
The Independent Parliamentary Standards Authority (IPSA) which sets pay levels, has just published its response to the consultation. It received just under 4,000 submissions of which over 1,700 were from TaxPayers' Alliance supporters.
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Despite the overwhelming backing for our policy, IPSA bottled the decision and took the easy way out -Â ignoring thousands of taxpayers who told them to get a grip on the system.Â
IPSA will inevitably recommend a pay rise for MPs next year which many won’t deserve and that no one agrees with. We won't let them get away with it! We will keep making the case in the corridors of power for vital reform of this woeful system.
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TaxPayers' Alliance in the news
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ÂŁ200 million wasted on government IT project
Yet again woeful public sector procurement has cost taxpayers dearly. The Telegraph revealed that an "identity verification programme" has been axed after 8 years despite a bill of £200 million. Designed to allow the public to access government services, the scheme was scrapped after several departments "refused to use it".
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Speaking to political correspondent Tony Diver, our media campaign manager Danielle Boxall was distinctly unimpressed with this failure, "This is just the latest in a long line of failed government IT projects. It is crucial that providing value for taxpayers is at the heart of all public sector purchasing decisions, especially when hundreds of millions of pounds are at stake.”
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Stratford's "shambolic" scheme
Yet again a council has managed to waste taxpayers' cash in one of the most absurd ways possible. The Times reports that Stratford-upon-Avon council spent £493,000 on "garish safety barriers and unfinished roadworks" and turned the historic town into an “eyesore”.
Many residents labelled the scheme designed for covid safety as "shambolic". Local business owners say they are being driven out as their shops are now "inaccessible".
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Asked for comment I was scathing of the council's profligacy, "Stratford taxpayers don’t want to see their money wasted in the rush to change local roads unnecessarily, especially when their council tax is about to rise. The council’s original intentions may have been good, but the huge cost of the scheme should be proof enough that residents are being harmfully affected."
Councillors should heed the concerns of residents and review the suitability of these measures immediately.
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Racking up the miles
Both the Express and The Times reported that the BBC has agreed a contract worth ÂŁ15 million for the provision of hire cars. This is separate to another tender for staff taxis worth in the region of ÂŁ74 million and comes at a time when the Beeb is hounding over-75s to pay the licence fee.
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Voicing her dismay at the spending Danielle Boxall told the Express, “Contracts like this perfectly illustrate why the TV tax isn’t good value for money. The BBC claims it can’t pay for TV licences for over-75s, yet it finds tens of millions of pounds to hire cars.”
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TPA fights back against foreign aid rise
Foreign aid was back in the news after the government announced that spending will increase to 0.7 per cent of gross national income once the fiscal situation allows. Within minutes of the news breaking our media team issued a response to highlight just how bad this would be for taxpayers.
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Shortly after I was invited onto Politics.co.uk to make our case. I stood up for taxpayers, explaining that many Brits are livid that we send money to nations with space programmes. Adding that we must "get spending under control if we want the country to have a sound financial future."
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In conversation with Roger Bootle
There's plenty to sink your teeth into next week as the TaxPayers' Alliance will be hosting two fantastic events. On Thursday lunchtime, TPA chairman Mike Denham will be in conversation with Telegraph columnist and Capital Economics Chairman, Roger Bootle. They’ll be taking a look at the bigger macroeconomic picture, with plenty of time to take your questions too. Click here to register for this unmissable discussion.
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How to reform business rates and support businesses
The day after, we partner with ConservativeHome to host a discussion with an expert panel at the Conservative Party Spring Forum on how to reform business rates and support businesses.
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Speaking at the event will be, Paul Scully MP, Minister for Small Business, Consumers and Labour Markets, Georgie Frost, Journalist and Broadcaster, Nick Lakin, Group Director of Corporate Affairs, Kingfisher plc, James Lowman, Chief Executive, ACS and John O’Connell, Chief Executive, TaxPayers’ Alliance.
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Tower Hamlets: Pay rises for rate-increasing councillors
Our operations assistant and resident of Tower Hamlets, Freya Stear, was shocked to discover that the council has increased allowances for its elected members. As she explains, "Taxpayers are fed up of hearing councils plead poverty whilst simultaneously voting to increase their own pay". Hear! Hear!
Worse still, only two councillors voted against the rise despite residents facing a five per cent tax hike this year. This is a familiar story to many across the country.
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As letters indicating rises in council tax land on doorsteps in the coming weeks, one can’t help but wonder how many of the councils hiking council tax are also increasing their own pay. The message from the TaxPayers' Alliance is clear: don’t blame austerity whilst still awarding yourself pay increases. Click here to read more.
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Bungling bureaucrats waste billions
The Sun reports that a bungling civil servant cost the taxpayer £1 million after entering the wrong exchange rate into a computer. Reporter David Wooding writes, "The Home Office gaffe led to thousands of foreign visitors being undercharged for visa applications."
But this was just the tip of the iceberg as the paper claims that £1.7 billion of public money went up in smoke last year. This very much tallies with our findings that exposed over £5.6 billion of waste. Responding to the revelations, John O'Connell said,  “Ministers must wage war on waste to stop this squandering.”
The TaxPayers' Alliance is making it clear to Downing Street that before raising taxes, the government should eradicate wasteful spending.
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Harry Fone
Grassroots Campaign Manager
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