The nanny state reared its ugly head again this week after a report commissioned by the government proposed that foods should be taxed based on their sugar and salt content. Written by Henry Dimbleby, co-founder of the Leon restaurant chain, his recommendations would see every household forking out an extra £172 per year to the taxman.
Naturally, the TaxPayers' Alliance didn't delay in calling out these preposterous proposals that would create a £3/kg tax on sugar and £6/kg on salt in processed foods. Our team crunched the numbers and discovered that store cupboard staples such as jam, ketchup and cereals, could increase in price by almost a half. The tax could also see the price of chocolate bars increase by almost a quarter, multipacks of sweets by almost a third, and crumpets by almost a quarter.
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When totted up, taxes on sugar and salt could mean that consumers pay an extra £4.8 billion in tax every year. We argue the proposals would target consumers, food manufacturers and the already struggling hospitality industry. It would be deeply regressive and see food items become either tasteless or reduced in portion sizes.
For example, breakfast staples like strawberry jam and frosted cornflakes could become around 46 and 33 per cent more expensive respectively. Similarly, family dinners like pizzas and pasta sauce could become around 15 and 6 per cent more expensive.
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Our findings were covered in Britain's biggest newspapers including the Daily Mail, The Sun and Daily Telegraph. Our chief executive John O'Connell was adamant that the government must stop its nannying attitude towards the British public, telling journalists:
"This is yet another case of middle-class meddling that will hit the poorest families hardest, as this madcap scheme will hike up costs of 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."
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But we didn't stop there! Our media campaign manager Danielle Boxall took to the airwaves of BBC Radio Cornwall to stand up for hard-pressed taxpayers. She told listeners that such taxes would be "very damaging" and "negative" for people just going about their day-to-day lives. Click here to listen to a clip.
In print, on the airwaves and social media, the TPA is telling the government loud and clear to reject outright any tax hikes and instead trust people to make their own choices.
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Taxpayers don't want another arbitary overseas aid target
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As you may recall a number of Conservative MPs were set to rebel against the prime minister's plans to cut foreign aid. At the TaxPayers' Alliance we've long campaigned against wasteful foreign aid spending and the whimsical spending target.
In something of a compromise to appease rebel MPs, Boris Johnson unveiled a "double lock". This means that the Office for Budget Responsibility will decide when the overseas aid budget can increase from its current target of 0.5 per cent to 0.7 per cent of gross national income.
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The PM eventually got his way in parliament and taxpayers will see savings this year of about £4 billion. But as the TPA was quick to point out to the nation's press and politicians, this is another arbitrary aid target taxpayers don’t want.
It will lock in wasteful foreign aid projects and ensure the British public is stuck with the 0.7 per cent stipulation for years to come. Ministers must act by scrapping the wasteful aid requirement altogether and ensure money is spent on the basis of humanitarian need, not Whitehall targets.
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TaxPayers' Alliance in the news
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NHS trust must face the music
Just when you thought wasteful spending couldn't get any more ridiculous along comes an NHS trust which lost £360,000 of taxpayers' money on a failed music festival. What's perhaps even worse is that The University Hospitals of Derby and Burton NHS Foundation Trust went to great lengths to stop the information becoming public.
The festival, Derby Sound, was due to take place in 2019 but was cancelled due to poor ticket sales. Then ensued a two-year battle for data publication following a freedom of information request from local journalists. The independent ombudsman eventually ruling in their favour.
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Asked for his thoughts, John told the Daily Mail, "It's outrageous that taxpayers' cash has been wasted in this manner. People expect their hard-earned taxes to be spent on frontline care, not music festivals which are best left to the private sector. The trust must get a grip and focus on its statutory duties rather than pet projects."
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Should Britain adopt road pricing?
It looks like plans to introduce road pricing are gaining momentum again after a government report looking into "transport decarbonisation". As people switch from diesel and petrol cars to electric ones it is estimated that the Treasury will lose around £30 billion a year in fuel duty. Road pricing could plug that gap.
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Weighing in on the discussion our research director Duncan Simpson was adamant that motorists must get a good deal. Yes, the government will see a drop in fuel duty revenue but a new form of tax isn't necessarily the answer. Cutting wasteful spending would be a good way to balance the books for example.
On the other hand, cars, vans and lorries all create what economists call negative externalities and have to be paid for somehow. Some will argue that it is only fair that those who drive the most, pay the most. It's a debate that's likely to run but one thing is clear, Britain's motorists are already over-taxed!
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Slough council's £100 million blackhole
As I reported last week it wasn't entirely surprising that Slough council went bankrupt given its spendthrift attitude towards taxpayers' money. But in my ConservativeHome column this week I was keen to focus attention on the actions of Slough's senior management.
In a leaked internal video to Slough council staff, chief executive, Josie Wragg, made clear the council had endured a “challenging situation based on poor financial practice over a number of years”. Yet this is the same council that on a sister website proclaims it "redesigned [its] world class leadership structure” and “Launched the Brilliant Basics ways of working framework." Perhaps not so brilliant after all.
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Questions linger over the Slough's former Section 151 officer, Neil Wilcox, who resigned just a couple of months before the council declared bankruptcy. Did Wilcox know about the massive black hole in the council’s finances? And if he did, was the alarm raised? Click here to read more.
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Welsh tourism tax makes for a tough break
Talk of a tourism tax has bandied around the corridors of the Senedd for years, but the issue was ignited recently when it was included in Mark Drakeford’s post-election five-year plan. As our digital campaign manager Joe Ventre discusses, the detail is still murky, but the proposal involves creating powers for each of Wales' 22 councils to decide if they want to introduce the levy, which would then likely be imposed on nights spent in hotels, bed and breakfasts or self-catered holiday lets.
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The concern is that by adding an arbitrary charge to holidays, councils would make their local hotels, restaurants, pubs and attractions less competitive, driving tourism away to other, more affordable areas. Excessive charges could see Wales’ tourism boom grind to a halt, depriving towns of trade and opportunities at the time when they are needed most.
The Welsh government should be showing tourists that Wales is not just a holiday destination for covid, but for life. Click here to read more about Wales' tourism tax plans.
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Home Office losses and BBC salaries
Another week and sadly yet more of taxpayers' hard-earned cash is going down the drain. John O'Connell sat down once again with Michelle Dewberry to discuss the latest on GB News.
First, off the bat, the Home Office revealed that it had lost somewhere in the region of £30 million in the last 12 months on everything from ID cards to cancelled flights.
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Meanwhile at the BBC, the costs of the top paid BBC execs is running into the tens of millions. There is some good news though. Compared to last year the wage bill for senior staff is somewhat lower. But employees are still enjoying perks such as 5-star hotels and chauffeur driven cars. Click here to watch the interview.
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Harry Fone
Grassroots Campaign Manager
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