On Tuesday the Office of Budget Responsibility (OBR) released a report warning that public debt could reach levels not seen since the 1950s if the government does not get a handle on borrowing. The UK has seen the fourth largest increase in debt out of 35 advanced economies, after Canada, Norway and Singapore.
As TPA researcher Tom Ryan made clear this week, "The chancellor should take this report as a warning sign that the government needs to fight their prime minister’s spendthrift instincts. Rishi is well aware of some of the obvious battles. The ‘triple-lock’, which alone looks to increase spending by £3 billion, should be scrapped or at least suspended in order to get a handle on the problem."
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But the astronomical level of debt is going to require a much bolder approach. The UK national debt is a ticking time bomb. Accounting for health, education and transport alone, the OBR found unfunded long-term costs of the pandemic which will reach £10 billion over the next three years.
These numbers are a wake-up call of the fiscal pressures facing us as we emerge from the pandemic. It’s clear the economy has been battered by covid and left us with a financial black hole each - adding to our already 60-year high debt level.
The TaxPayers' Alliance is ramping up the pressure on the government to get a grip on spending and bring our astronomical debt levels down.
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England fans paying £65,000 a minute in beer taxes
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With England supporters ready to enjoy a pint watching the Euro 2020 final this evening, the TPA has revealed that fans are paying around £64,884 per minute in taxes on beer. When compared to EU member states, the UK has the third-highest beer duty per pint.
Using estimates from England’s semi-final game against Denmark we found that if the current 5 per cent reduced rate of VAT were extended to alcohol, supporters would have saved over £3 million on the price of pints during the match.
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Our analysis has already enjoyed several column inches in The Sun and we are calling on the chancellor to support fans and our hard-hit hospitality industry. He should include alcohol in the VAT cut and extend it to April 2023.
Football might be coming home, but the taxes on pints are going through the roof. With England fans backing the squad with a beer in hand, a tax cut on alcohol would be a massive win for punters and pubs.
Help our hospitality sector by signing our petition - we’ll take it straight to the Treasury!
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TPA Talks with Robin Aitken
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I'm delighted to say we've recorded another excellent episode of TPA Talks. Our research director Duncan Simpson had a fascinating and extensive discussion with former BBC reporter Robin Aitken. Drawing upon his 25-year tenure, Robin discusses political biases, out-of-touch attitudes and waste of licence fee payers' money at the Beeb. He also explains why he thinks now is the time to axe the TV tax for good!
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His comments about former BBC director generals are particularly eye-opening. Robin argues that "the rot really set in [at the BBC] in the 1990s under John Birt and under his successor [Mark] Thompson."
He explains that Thompson did something "unforgivable" by inflating executive salaries to a "ridiculous level". Indeed Mr Thompson's remuneration was £834,000 a year at one point. Click here to watch this must-see episode.
Please subscribe to our YouTube channel so you never miss an episode. If you prefer audio-only, TPA Talks is also available as a podcast on several outlets:
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TaxPayers' Alliance in the news
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Slough council files for bankruptcy
As you may have seen Slough council has become the third English council to declare bankruptcy after a £100 million black hole was discovered in its finances. Speaking to GB News presenter Michelle Dewberry, our chief executive John O'Connell was quick to point out the wasteful spending by Slough council over the years that led to this situation.
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He highlighted the £49 million spent on a new council headquarters complete with astroturf flooring, bean bags and £30,000 worth of fake plants. GB News viewers were shown images the TPA had exclusively obtained of the opulent offices. Furthermore, in our 2019 edition of the Town Hall Rich List, we revealed that Slough's outgoing chief executive Roger Parkin pocketed total remuneration of £595,000.
Clearly, something has gone massively wrong at Slough council. There are still many unanswered questions and the TPA is searching for answers. Stay tuned for more information in the coming weeks.
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TPA fights back against nanny state 'salt tax'
The Sun recently revealed that an upcoming report will recommend a 6 per cent tax on foods with high levels of salt. It is hoped that such a levy will encourage Brits to consume more fruit and vegetables. But as the TPA argues all it will do is push up prices and further extended the role of public health zealots into our lives.
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Weighing in on the matter, John told The Sun, "This is yet another case of middle-class meddling that will hit the poorest families hardest, as this madcap scheme will hit everyday essentials. Not only do the high priests of the nanny state think that ordinary folk can't look after themselves, they also can't resist dipping their hands into taxpayers' pockets."
We've previously campaigned against plans for a meat tax and we will do everything possible to ensure a salt tax is rejected by the government.
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Taxman could be allowed to snoop through bank statements
A new report by the Office of Tax Simplification has suggested that financial data be more easily shared with HMRC in an effort to streamline tax collection. According to the Daily Telegraph, bank statements could be "automatically transferred from finance companies to the tax office – a move that could herald the end of the dreaded self-assessment."
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Naturally, there have been concerns about privacy and the TPA was straight into the debate. As John explained, "Any measures to simplify tax returns are most welcome. However, if this does go ahead, protecting taxpayers' privacy must be of the utmost importance."
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BBC annual review 2021: the good, the bad, and the ugly
The BBC annual report is out, which means another slew of info on the pay for top bosses and stars. As I write this week there is good news, bad news and the downright ugly.
The good news is the Beeb has finally taken note of our long-running campaign and started to reduce the bumper wage bills. In our BBC Rich List 2020, we revealed Auntie’s stars and executives were receiving mega-salaries, with 253 senior staff costing £37.5 million and enjoying incredible expenses
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For the bad news, you have to dig a little further into the figures. Median earnings across the BBC were £45,900 in 2020-21, a pay rise of 1 per cent. It is still almost double the median earnings in the North East of England and 78 per cent higher than median earnings across the UK (£25,780)
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Luxury limos for law chiefs
Scots were up in arms after a contract worth £2.1 million was awarded to a chauffeur company to transport judges around the country. According to The Scottish Sun on Sunday the firm that won the contract "has previously transported a host of celebs" in luxury limousines.
A spokesperson for the Scottish Courts and Tribunals Service argued it will provide "a valuable service transporting judges to and from various court locations throughout Scotland”.
Asked for my response I told journalist Kevin Duguid, “Scots will be flabbergasted at this huge spending on luxury cars. The cost of justice isn’t cheap but why should already well-paid judges enjoy taxpayer-funded chauffeurs?" Given the dire state of the public finances perhaps the Courts Service should rethink this contract.
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The TaxPayers' Alliance is seeking a motivated Fundraising, events and operations assistant to help ensure the organisation is effectively run. The role will be based full-time in the TPA’s Westminster office.
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To apply, please email [email protected] with a CV and cover letter outlining your suitability for the role. We may not be able to reply to all applicants. Click here for more details.
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Harry Fone
Grassroots Campaign Manager
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