Throwing money at the social care problem is no guarantee of success.
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TPA leads the charge against national insurance rise
News broke late on Thursday evening that the prime minister was planning a hike in national insurance (NI) to fund social care. The TPA media team immediately sprang into action and just minutes later we had fired off a press release to the nation's journalists.
We were soon fielding many calls and emails from journalists which resulted in no fewer than six broadcasts appearances on Friday. It's fair to say the TaxPayers' Alliance dominated the airwaves as we led the charge against this tax rise.
A rise of just 1 per cent in national insurance means that someone earning £20,000 will pay an extra £104 in tax every year. That could rise to over £200 if the health secretary Sajid Javid gets his way ([link removed]) and a larger rise is implemented.
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As our research director Duncan Simpson made clear on GBNews ([link removed]) "the UK is already an incredibly highly taxed economy". Adding that throwing money at the social care problem is no guarantee of success.
Something very much echoed by our digital campaign Joe Ventre when took part in a discussion on talkRadio. Joe astutely explained that when the Blair/Brown government raised NI in 2002, of the £40 billion raised, nearly half of it was effectively wasted on pay and price inflation.
The TPA continued to drive home this message late into the day with more appearances on Channel 5 and LBC News.
Britain should of course have a world-leading health and social care system but this tax hike on working people is not the way to do it. Not only is Boris Johnson breaking a manifesto pledge to freeze taxes but it seems that no plan is in place for fundamental reform of what many consider a failing system.
Suggesting this tax rise is the only sustainable solution for social care is smoke and mirrors. Just like in 2002, receipts will end up being used for day-to-day spending. As our research for today's Sunday Telegraph revealed Brits will be left paying the highest tax bills in a generation. ([link removed])
We will not let up in our campaigning against this Tory tax hike. Do let me know your thoughts. (mailto:
[email protected]?subject=National%20insurance%20rise)
TaxPayers' Alliance in the news
Treasury civil servants
Covid has caused big changes for many of us, particularly when it comes to home working. This is also true of Treasury civil servants who will be allowed to permanently work from home most days of the week. ([link removed]) Naturally, this raises the question of whether government workers need such expensive real estate in the centre of London?
Our researcher Tom Ryan did some digging and estimated that a jaw-dropping £731 million could be saved if all 102,000 London-based civil servants worked from home three out of five days a week.
Adding, in his comments to the Daily Telegraph, “Paying for the prime location of Whitehall pen-pushers costs a small fortune, with operating costs alone running into the hundreds of millions. Offices should either be properly used, or bureaucrats moved out so savings can be made.”
"Ludicrous pay hikes" at education quango
The Daily Mail Scotland has discovered bumper pay rises for senior staff ([link removed]) at the "failing" quango Education Scotland. According to journalist Graham Grant "chief executive Gayle Gorman has seen her salary rise to up to £125,000 this year, increasing to between £165,000 and £170,000 with pension benefits included."
She is supported by a team of no fewer than nine strategic directors including a former executive Lego executive, remunerated to the tune of £85,000 per year. The quango has come under fire in recent years after "exams chaos".
Giving his opinion on sky-high salaries, TPA chief executive John O'Connell didn't hold back, "many Scots will wonder why the well-paid public sector elite which runs our quangos seems ‘o preside over one disaster after another, all while enjoying ludicrous pay and perks".
BBC refuses to reveal logo redesign costs
The BBC has come under fire after refusing to reveal the costs of a redesign to its logo. Adding insult to injury is the minuscule difference between the old and new logos ([link removed]) . The BBC declined to answer a freedom of information request on the costs of the redesign, citing that commercial sensitive precluded them from doing so.
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We know from a previous redesign back in 1997 that the cost was over £1 million. And speaking to Michelle Dewberry on GBNews, our digital campaign manager Joe Ventre branded the redesign as "amateurish" ([link removed]) and that "money has been plucked from the pockets of licence fee payers."
I couldn't agree more and the TaxPayers' Alliance will continue in its endeavours to get the costs of this latest logo design revealed to the public.
Blog of the week
Act of faith? How can we prove we should be funding religious charities?
The Ministry for Housing, Communities and Local Government (MHCLG) recently published its annual report for 2020-21 and as I write it raises interesting questions when it comes to grants funded by taxpayers’ money. ([link removed]) MHCLG gave a total of £28.3 million to 47 charities, and the purpose for each donation is laid out in the report.
For example, £1.85 million was given to Fayre Share Foundation in an effort "to strengthen and support places of worship of all faiths in order to improve governance, increase their capacity to engage with women and young people, challenge intolerance and develop resilience."
The causes may be noble indeed, but the project descriptions are vague, to put it mildly. Taxpayers have no idea whether they’re getting value for money or not - particularly when six and seven-figure sums are involved.
Taxpayers shouldn’t be forced to fund schemes and views they may not support, and projects whose effectiveness has not been properly evaluated or empirically proven. As we know all too well, there is no magic money tree. Resources are finite. Wouldn't it be better to focus this cash on frontline services? Click here to read the full story. ([link removed])
War on waste
Taxpayers in Lincolnshire could see big savings
Reports suggest that a partnership between three councils in Lincolnshire could save millions of pounds over the next 10 years. ([link removed]) Boston, East Lindsey and South Holland councils will share a senior management team in order to "reduce duplication across the authorities".
This news is very much welcomed at the TaxPayers' Alliance. Sharing services and senior management teams are something we have long argued for. The benefits are plain for all to see. Let's just hope that residents see lower council tax bills and improved services as a result.
Please send me examples of how your council can save money. (mailto:
[email protected]?subject=War%20on%20Waste)
Harry Fone
Grassroots Campaign Manager
Make a donation to the TaxPayers' Alliance ([link removed])
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