It’s been three years now since we sounded the alarm on the tax burden and the nation is taking notice.
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Budget analysis: tax burden will reach 73 year high
It's been another important week at the TaxPayers' Alliance as chancellor Rishi Sunak laid out his Budget to the nation. The team worked day and night, poring over the details - our post-budget analysis revealed that the tax burden is to reach a 73 year high in 2023-24.
It’s been three years now since we sounded the alarm on the tax burden. Back in 2018 ([link removed]) our report made it a well-known fact that the burden was the highest in 50 years. Now it's over 70 years and it came as no surprise that it was the lead item on BBC News at Ten. ([link removed])
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We shouldn't lose sight of the fact though that there were some important wins for taxpayers. Rishi announced cuts to business rates and revaluations every three years - something we proposed in our submission to the Treasury's fundamental review ([link removed]) in August last year.
It was also good to see cuts and simplification of alcohol duties. As our Quids Inn campaign made abundantly clear, the hospitality sector needs a helping hand to get through winter and see-off the lasting effects of covid restrictions. Shaking up alcohol duties has been a long time coming and this was a welcome signal of support for Great British pubs. It's great to see the chancellor has listened to our calls.
As soon as the chancellor finished delivering his budget, our team sprang into action and immediately began drafting a press release for the nation's media. It soon landed in the inboxes of journalists and producers.
Before we knew it the media phone was ringing off the hook and TPA spokespeople were appearing on TV and radio stations across the land.
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We made it clear that the historic high tax burden will continue to grow thanks to Rishi's spending spree. Targeted tax cuts with more responsible spending would have delivered a much stronger boost to growth while giving respite to taxpayers and businesses under the cosh.
Whilst it was far from the perfect Budget, we shouldn't be despondent. We are standing up for Britain's hard-pressed taxpayers and millions are hearing us. The chancellor knows he is on thin ice and says he wants to cut taxes. The TaxPayers' Alliance will continue to hold his feet to the fire and ensure that he does.
Let me know your thoughts on the Budget. (mailto:
[email protected]?subject=Budget%202021)
Overhauling BBC and C4 would save taxpayers a fortune
Ahead of the Budget we called for the chancellor to sell Channel 4 and the majority of the BBC. In landmark new research ([link removed]) we found that a potential sale of BBC shares could generate up to ÂŁ5 billion for the government, enough to increase the tax-free personal allowance by ÂŁ300.
As TPA policy analyst and the report's author, Darwin Friend, made clear on GBNews, neither Channel 4 nor the BBC in their current forms fit into the 21st-century broadcasting market.
We have a very diverse media market, it's not right for Britain to have two publicly owned anymore. The public and taxpayers will benefit as will the broadcasters by being more competitive and innovative. Click here to watch Darwin brilliantly explain how taxpayers could save a small fortune. ([link removed])
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But it wasn't just GBNews where the report made a splash. Many national newspapers and hundreds of local newspapers covered the story proving there's a huge appetite for this policy.
In the coming weeks and months, we'll be piling the pressure on the government to unshackle these media giants from the taxpayer and let them stand on their own two feet.
Click here to read the policy proposals in full. ([link removed])
(Even more) TaxPayers' Alliance in the news
More cash doesn't mean better outcomes
An investigation by the Daily Mail has revealed that despite massive spending increases for the NHS the expected benefits haven't materialised ([link removed]) . Funding has increased 40 per cent since 2010 but NHS England has 20,000 fewer beds and waiting lists for route procedures have doubled! Interesting to note as well, the NHS has 180,000 more staff than it did ten years ago.
In his comments to the Daily Mail our chief executive John O'Connell was crystal clear that the NHS must give taxpayers bang for their buck, "Given the new health and social care levy, taxpayers expect a certain standard of care and will not accept funds being wasted. Health professionals must ensure the NHS is offering value for money in every pound it is spending."
HS2 should be scrapped
The disaster that is High Speed Two continues to attract attention in newspapers and on the airwaves. I was delighted to take part in a debate on GBNews ([link removed]) about whether we should scrap Europe's largest infrastructure project.
Taking on pro-HS2 campaigner Henri Murrison, I argued that the project has been a disaster from the start.
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Since it was conceived, project costs have soared and are expected to go even higher. The project has overpromised and undelivered. Claims of 18 trains per hour travelling at 400km/h simply won't happen. Planners still haven't finalised the redesign of Euston station - meaning that when Phase 1 opens, initially only 3 trains per hour will run between Birmingham and Old Oak Common. Passengers will then have to make their own way to Euston!
Click here to watch a clip from the debate. ([link removed])
Blog of the week
Flying high, the chancellor shouldn’t stall on more APD reforms
Wednesday’s Budget was certainly a mixed bag for taxpayers. But ahead of COP26 - which starts today - there was one element of the fiscal plans that stirred up controversy: changes to air passenger duty (APD).
As our research director Duncan Simpson writes ([link removed]) from April 2023, the rate on all flights between airports in England, Scotland, Wales and Northern Ireland will be reduced from £13 to £6.50. On the other side of the coin, a new “ultra-long-haul” rate will be introduced for flights in excess of 5,500 miles.
Overall the announcement is great news for domestic flyers and something we called for in HM Treasury’s consultation on aviation tax reform. Where we differ with the chancellor is on the new ultra-long-haul rate. The problem with APD in general is that the link between passenger numbers and carbon emissions is weak.
The chancellor must be bolder and abolish APD, replacing it with an “air flight duty” based on emissions. This would be a better deal for taxpayers and encourage airlines to use more efficient aircraft. Click here to read the full story. ([link removed])
War on waste
A "bird-brained" idea?
The Mirror reports that Worcester city council is set to spend ÂŁ74,000 of taxpayers' money in an attempt to scare off seagulls ([link removed]) that have "terrorised" local residents.
One idea by the council is to install "squawk boomboxes" that will play a pigeon's distress call at the birds in an attempt to ward them off. Perhaps unsurprisingly, residents have described the plan as "bizarre" and "barmy".
The TPA will be keeping an eye on this story to see if taxpayers get a good deal or not. But do let me know if you think it's a good idea or not? (mailto:
[email protected]?subject=War%20on%20Waste)
Harry Fone
Grassroots Campaign Manager
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