High Speed 2 has yet again hit the headlines following a cost increase of £1.7 billion owing to social distancing measures on construction sites. This follows a hike of £800 million to the cost of Phase 1 after complications at Euston station just a few months ago.
As part of our regular War on Waste segment on GB News, our chief executive John O'Connell took to the airwaves to fight taxpayers' corner. Speaking to presenter Michelle Dewberry he stressed that the business case for HS2 "has been flawed from the start". Adding that the original cost estimate was around £30 billion and the current figure of £106 billion will probably soar even higher.
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Michelle was quick to point out that the working from home revolution will surely put pay to this white elephant project. John heartily agreed but unfortunately for taxpayers, "Politicians like big shiny projects that they can show off to the electorate."
In his closing remarks, John was adamant that HS2 must be scrapped. This sort of wasteful spending wouldn't be tolerated in the private sector which would have cut its losses by now given the significant cost overruns and delays. If the government is determined to press ahead then it must get costs under control. There is no magic money tree, costs cannot be allowed to increase exponentially.
The final bill could be as high as £170 billion. The TaxPayers' Alliance will hold HS2's feet to the fire. We will do everything possible to get the best deal for Britain's taxpayers.
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TaxPayers' Alliance in the news
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TPA fights back against Rishi's pension raid
The TPA didn't delay in slamming the idea of a pensions raid by the chancellor to claw back cash and pay for the pandemic. As we have long made clear, the problem is not a lack of tax revenue, it's too much government spending.
Citing our research on the 70-year high tax burden, The Telegraph reported, "Analysis by the TaxPayers' Alliance shows that Mr Johnson is on track to be spending more by the end of this Parliament than recent past prime ministers."
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Asked to weigh in John further put the current spending levels into context, “Even compared to Cameron and Blair, Boris is a big spender. Unrelenting spending commitments after Covid-19 are simply unsustainable.”
The country is facing the highest taxes in a generation. The TPA is calling on the chancellor to give hard-pressed households a respite from taxes. Slashing red tape and cutting taxes will get the economy booming again.
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Putting the NHS to the test?
NHS Test & Trace was back in the news this week after the National Audit Office published an in-depth analysis of the system. It found that just 14 per cent of the 691 million lateral flow tests distributed in England had been registered, despite spending almost £2 billion on the tests. What's more, despite plans to reduce the number of consultants, it actually ended up employing more!
We were quickly out in the media to digest the findings. Opening the day talking to Julia Hartley-Brewer on talkRadio's breakfast show, our media campaign manager Danielle Boxall said taxpayers are right to question the amount spent on consultants, who make up 45 per cent of NHS Test & Trace central office staff. Click here to watch a clip from the interview.
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Danielle went on to the close the day on GB News, discussing the report with TPA favorite Michelle Dewberry. One things for sure - you can find the TPA on the airwaves morning, noon and night!
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Is this the best time to splash out on a royal yacht?
The plan to build a new royal yacht was back in the news week after former chancellor Ken Clarke criticised the idea as "a complete waste of time". He argued that the £200 million cost of the yacht would be better spent on improving the "quality and availability of social care".
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Wading into the debate Danielle was very much in agreement with the former chancellor. Speaking once again to talkRadio listeners she pointed out that with government debt in excess of £2 trillion and record-high borrowing the country simply cannot afford this luxury adding, "we shouldn't be spending £200 million on a flashy boat". Click here to watch a clip from the interview.
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Sadiq splurges taxpayers' cash
Mayor of London Sadiq Khan did little to ingratiate himself with taxpayers after it was revealed that spending on his public relations budget has risen to over £1 million. According to the Daily Mail, "Mr Khan splashed out £1,097,285 on public relations in 2020/21 compared to £732,537 in 2015/16."
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Venting his frustration at the mayor's profligacy our digital campaign manager Joe Ventre told Mail reporters, "Londoners will be maddened by the mayor's spiralling PR spend. While taxpayers in the capital faced down the pandemic and a series of torrid rate rises, City Hall loosened the purse strings for publicity."
The TPA is putting the mayor on notice to clamp down on these surging spin costs, prioritise frontline services, and deliver hard-pressed households some much-needed savings.
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ONS data shows why the government must save to spend
On Tuesday the Office for National Statistics (ONS) released more public sector finance data which revealed the financial impact a year of coronavirus has had on public sector borrowing. As TPA researcher Scott Simmonds explains, "with the opening of the economy almost within reach, government borrowing remains at near-record highs."
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Despite coming in £4.2 billion under the OBR economic and fiscal outlook at £24.3 billion, May 2021 was still the second-highest May borrowing on record. This amount contributed to public sector debt reaching almost £2.2 trillion at the end of May 2021, an increase of £259.1 billion on the same period last year.
This just further highlights the pressing need for the government to get spending under control. The chancellor must make savings. Our Save to Spend paper has identified 15 areas where saving could be found, totaling £43 billion this year. Click here to read more.
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ICYMI: What does the future hold for hospitality
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What does the future hold for hospitality?
The cancellation of 'Freedom Day' on Monday 21st June provided the impetus for an excellent TPA webinar this week on the challenges facing pubs, clubs, hotels and restaurants. Our brilliant panel made the case for much-needed tax cutting measures, including our popular Quid's Inn petition, which calls for the current VAT cuts to be extended into next year and expanded include alcohol.
Claire Bosi, editor of Chef & Restaurant Magazine, explained the benefits that could come with tax cuts, saying that "if the VAT levels were kept low, on par with our European counterparts, then potentially we can start to pay people more, and then we can grow more of the UK-based workforce." We'd raise a glass to that!
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Hugh Osmond, who founded Punch Taverns, was quick to point out that venues are not asking for permanent hospitality handouts, but a boost during this difficult time. He highlighted that "hospitality is a net provider of tax... we pay all different types of tax: huge rates, a lot of VAT, a huge chunk of employment tax. And help from the government for this period, not forever, but help from the government to get back on its feet...would be really useful."
Rounding off our star-studded panel, chief executive of the British Beer and Pub Association Emma McClarkin revealed that £1 in every £3 spent in a pub goes to the exchequer! Emma explained the thinking among publicans, saying "we do operate on incredibly small margins, and going into the pandemic it was absolutely the case that we needed to address the very unfair taxation burden that was on the beer and pub sector." On our petition, Emma pointed out that the VAT discount at the moment only helps pubs with food. This is exactly why our Quid's Inn petition is so vital.
A huge thanks to our excellent speakers for an entertaining and informative chat. You can watch our webinar here - and remember to share our petition!
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The Elephant in the room
Taxpayers have been left forking out £400,000 a year for the so called Elephant building, part of Coventry Sports and Leisure Centre, to stand empty.
The centre shut in February 2020 after it was deemed no longer fit for purpose, with council bosses saying they are in "no rush" to find a future for it despite the huge annual bill being lumped onto local taxpayers. With dithering and delays on sorting the site even before the covid pandemic hit, this is the latest reminder that ratepayers will always end up paying the price for their council's incompetence.
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Harry Fone
Grassroots Campaign Manager
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