Transparency is key to ensuring that the TPA is able to hold the public sector to account. We trawl through hundreds of thousands of pages of data every year as part of our efforts to eradicate wasteful spending.
But this is under threat. Since Britain left the European Union a new subsidies framework will be implemented to help struggling regions. With billions of pounds set to be handed out to all corners of the country, it's vital that the public know who is receiving funds and the reason behind it.
As things stand the government will only publish individual grants of more than £500,000. We argue that post-Brexit Britain should have world-beating transparency standards, not a shady system of stealth subsidies we had under the European Union. In March, the TaxPayers' Alliance called for limits to come down to £500.
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Now the government's anti-corruption tsar, John Penrose MP, has picked up the baton in parliament and taken our case directly to the secretary of state, Kwasi Kwarteng. In a letter written by John Penrose and signed by the TPA to Mr Kwarteng, it was made clear why this matters:
"Our concern is that the Bill currently exempts any individual subsidy under £500,000 from being declared under the new transparency rules – an increase from the existing rules which we have inherited from the EU, which say that anything above 500,000 Euros must be published. So the initial draft of the Bill will make our new subsidy regime less transparent, not more, in direct contradiction of the principles which you have rightly laid out already."
The regulation will be decided when parliament returns from its summer break. Along with John Penrose, the TPA will be making the case for greater transparency. We will work with anyone and everyone to protect taxpayers' interests.
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Speaking about our campaign Mr Penrose was full of praise, “A massive thanks to the TaxPayers’ Alliance for their help with this campaign. They were one of the first to flag, back in March, that the planned subsidy regime had to be more transparent. Together I hope we can change ministers’ minds and push the government to be more open about how taxpayers’ money will be spent.”
When it comes to taxpayers’ money, accountability is all. Ministers shouldn’t start a stealth subsidy regime, which could see hidden cash handed over with no questions asked. The transparency requirements for these subsidies should be as similar as possible to those expected for other areas of government spending.
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TaxPayers' Alliance in the news
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Capital gains tax harms investment
Rumours abound in the media that chancellor Rishi Sunak could hike capital tax gains (CGT) in a move that will hammer taxpayers. According to the Express "reports suggest this [CGT] could be aligned with income tax, meaning the highest rate savers pay could rise to 45 per cent." Currently, there are two rates for basic and higher rate taxpayers which peak at 28 per cent.
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Weighing in on the news our chief executive John O'Connell was adamant that taxpayers deserve better, “Capital gains tax is a double tax that harms investment, which is precisely what we should avoid if we want to kick-start growth and help create jobs. As we emerge from the pandemic, we should be giving families and businesses a respite from tax hikes.”
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Average GP salary over ÂŁ100,000
Figures from the NHS show that family doctors are now taking home over ÂŁ100,000 a year on average. Their earnings have risen by 11 per cent in the last four years. At the same time, many private sector workers have seen slow wage growth and millions of people are struggling to book appointments with their GP.Â
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Tackling the issue head-on, our media campaign manager told Michelle Dewberry on GBNews that "nation's highest-paid GP takes in £700,000 a year." Rightly pointing out that taxpayers are right to question whether they're getting value for money when people aren't able to see their GP. Click here to watch a clip from the interview.
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Parking issues
The latest figures show that councils in England raked in a record ÂŁ1.76 billion in parking fines and fees last year. According to the Daily Mail, Westminster City Council took in the most at ÂŁ74.4 million which equals ÂŁ140 a minute!
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Speaking to Mike Graham on talkRadio I pointed that while it is right that illegally parked motorists are fined, councils shouldn't treat motorists as cash cows. Many motorists feel that parking regulations are unnecessarily complicated and designed to catch them out.
I told listeners that local authorities can't use motorists as a quick and easy way to raise revenue. Instead, they should be rooting out wasteful spending in order to balance their books. Click here to watch a clip from the interview.
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What a wind-up!
The Mail on Sunday revealed that staff in parliament made 2,000 phone calls to the Speaking Clock in just three years costing around ÂŁ1,000.
Speaking to Michelle Dewberry on GBNews, our research director Duncan Simpson was defiant that "there is no justification for this". Why anyone in the Palace of Westminster needs to call the speaking clock when they can use an array of modern devices that give very accurate time is mind-boggling!
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The amount of money involved may be small in the scheme of things, but it shows a disgraceful attitude towards public money. Ministers must immediately call time on this expenditure. Click here to watch a clip from Duncan's appearance on GBNews.
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The cost of policing climate protests
In a similar vein of unpopular public spending, it was discovered that policing protests by Extinction Rebellion has cost the Metropolitan Police an eye-watering ÂŁ50 million!
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Voicing his concerns to Kevin O'Sullivan on talkRadio, our policy analyst Darwin Friend argued that the right to protest is crucial in ensuring a vibrant and healthy democracy but "the costs should not be borne by taxpayers." Adding, "there are more important priorities such as restoring the public finances - these protests distract from this." Hear! Hear!
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Council bosses’ golden goodbyes are on the rise
Through our Town Hall Rich List series, we’ve highlighted some of the grotesque remuneration paid to senior staff at local authorities. As I write this week the latest data from the Ministry of Housing, Communities and Local Government suggests there may be a glimmer of hope for taxpayers when it comes to keeping local authority staffing costs under control.
The total value of all exit packages in England (payments made to staff leaving their jobs at local authorities) was ÂŁ252.4 million in 2020-21. A significant decrease compared to 2014-15, when it was ÂŁ517.1 million - TPA campaigning is paying off!
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Unfortunately, it’s not all good news. The total cost of exit packages may be declining, but senior staff are cashing in more and more. In 2014-15, only two senior employees in English councils received ex gratia payments in excess of ÂŁ100,000. But as of 2020-21, that had risen sharply to nine.Â
That’s why we're calling for a cap of £95,000 to be reimposed on exit payments. With the latest figures clearly showing that exit payments are on the rise, the campaign to put the lid back on the pot has never been so important. Please sign our petition and urge the government to reintroduce the cap.
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Councils are still wasting your money
As I've discussed many times in this bulletin, local authorities often argue that council tax has to go up every year because there is no more fat left to trim from their budgets. In my regular column for ConservativeHome this week I showed that this argument doesn't hold water.
A quick search of publicly tendered contracts by councils brings to light some shocking examples of wasteful spending. For example, did you know that Barnsley Borough Council is currently tendering a contract worth between £25,980 and £30,000 to buy 100 laptop computers which it will loan to European Social Fund (ESF) participants?
The ESF “aims to improve employment opportunities in the European Union”. Why Barnsley Council thinks this is a good use of local residents’ cash at a time like this is beyond me. Click here to read more ways councils are wasting your money.
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Harry Fone
Grassroots Campaign Manager
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