Ahead of the G7 conference in Cornwall, it was announced that a deal had been struck to establish a minimum global rate of corporation tax. Rishi Sunak hailed it as a "truly historic agreement" adding he was "proud the G7 has shown collective leadership at this crucial time in our global economic recovery.”
However, as the TaxPayers' Alliance was quick to point out, putting this into practice will be incredibly difficult. Furthermore, Britain's economy needs a big boost - the government should be enacting policies that encourage investment rather than discourage it.
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Invited onto talkRadio to discuss the tax plans, our media campaign manager Danielle Boxall perfectly laid out the flaws behind this proposed global tax rate. Mainly that if it is to be effective it will have to apply to more than just the countries in the G7.
It will need the backing of the G20 and OECD countries - which currently seems highly unlikely. For example, Ireland has a corporation tax rate of 12.5 per cent - the economy has boomed as a result - so it will probably not rush to sign up to a higher rate.
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Danielle ended the interview by calling on the chancellor to enact policies that will get the economy booming again. Cutting employer's national insurance would make it much easier for companies to hire more staff - especially as the furlough scheme is set to come to an end. Click here to watch the interview.
I'm also delighted to say that talkRadio presenter Patrick Christys threw his support behind the TaxPayers' Alliance, commending our "great and insightful research" he urged listeners to visit and website and find out more!
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The TaxPayers' Alliance recently paid a visit to a very windy Weymouth in Dorset to highlight that residents face an average council tax of ÂŁ2,223 - the second-highest in the country.
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Taxpayers are fed up with inflation-busting council tax rises and I told the council that it must be relentless at eradicating wasteful spending and ramping up efficiency to keep bills as low as possible for hard-pressed households.
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TaxPayers' Alliance in the news
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Counting the cost of the "special relationship"
The Daily Mail revealed some of the staggering costs of holding the G7 summit in Cornwall - most notably ÂŁ8 million of taxpayers' cash was spent extending the runway at Newquay airport so that US President Joe Biden's Air Force One jet and transport aircraft could land.
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Asked for comment by the Mail, our chief executive John O'Connell stood up for taxpayers, "It's important that visiting dignitaries and allies are well looked after when they visit our shores but we must not forget about taxpayers. The pandemic has had a devastating impact on the public finances and we can't afford to waste money." Hear! Hear!
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Netting a bad deal
One of the more ridiculous stories of the last week came from HMP Grampian where bosses forked out nearly £250,000 of taxpayers' cash on a "roof net" to protect staff and prisoners from "divebombing seagulls". According to The Scottish Sun, "The Scottish Prison Service defended the £234,000 net spend, insisting the seagulls posed “a danger to staff and prisoners”.
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Responding to this unusual expenditure John O’Connell told reporter Kevin Duguid, “Bosses must ensure the best possible value for taxpayers’ money in trying to handle these prison pests.”
No doubt many taxpayers will be livid at the spending and wonder if there are not more pressing issues the money could have been spent on.
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The pandemic isn't over for pubs yet
The past year has been a disaster for pubs - just ask anyone in the industry. As Danielle Boxall writes this week, even now pubs are fully open (albeit with many lingering restrictions) the nightmare isn’t over. Industry data released on Tuesday by the Office for National Statistics (ONS) confirms it.
Pubs and bars furloughed 64.5 per cent of staff on average from October 2020 to May 2021. For all other businesses, the figure was just 11.9 per cent. Worse still, the most recent data reveals that only 24 per cent of pubs and bars had high confidence that their business would survive the next three months.Â
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That’s why we’re calling on the government to extend the 5 per cent VAT reduction until April 2023, and include alcoholic drinks. Recent TPA analysis found that extending this cut could save the UK hospitality sector and consumers £15.7 billion across this financial year and next. Please click here to sign our petition.
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What does the future hold for hospitality?
And while we're on the subject I do hope you can join us for a panel discussion on the impact of the chancellor's VAT cuts for hospitality and what the next few years have in store for the industry. Our panel of leading industry voices includes:
- Hugh Osmond, Founder of Punch Taverns
- Claire Bosi, Editor of Chef & Restaurant magazine, campaigner, and former Michelin starred restaurateur
- Emma McClarkin, Chief Executive of the British Beer & Pub Association
- Esther McVey MP, Founder of Blue Collar Conservatives
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Date: Wednesday 23rd June
Time: 12pm (midday) wrapping up by 1pm
How to watch: Click here
As always there will be plenty of time for your questions at the end too. But if you can't make the event please send me your questions.
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Harry Fone
Grassroots Campaign Manager
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