There was a huge victory for taxpayers on Thursday as the government announced it would scrap the eastern leg of HS2. The long-awaited Integrated Rail Plan shows that money will be repurposed to improve rail connectivity in the Midlands and North of England.
This is something the TaxPayers' Alliance has long called for since our 2019 publication, The Great British Transport Competition.
HS2 has been a complete disaster with costs soaring, timescales slipping and billions of pounds wasted. At long last ministers have heeded our calls and taken a step in the right direction, replacing a part of this pie-in-the-sky project with hundreds of transport upgrades. The government is right to reallocate money to regional rail connectivity which should bring real benefits for millions of Brits.
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But the prime minister should now bite the bullet and go further. By scrapping the whole of HS2 he could save a small fortune and offer infrastructure upgrades across the whole country. There are plenty of rail projects in southern regions of the country that could benefit as well.
For example, services are once again running between Okehampton and Exeter thanks to the reopening of the Dartmoor Line. But if the line were extended to Plymouth then pressures could be alleviated on existing railways. Similarly, improving freight connections from Suffolk would free up capacity for passenger services and restoring small stretches of track in Sussex would greatly improve the rail network in the South East.
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The government backed our calls to fully electrify the Midland Main Line but more can be done. The three projects I listed above would bring huge benefits to the South West, South East and East Anglia - all for £2.5 billion - a tiny fraction of the cost of HS2.
This is exactly why Boris should scrap the rest of HS2 and free up billions for projects that will actually deliver palpable benefits for taxpayers across the country. In the coming weeks and months will be ramping up the pressure on the PM.
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Save £371 million by moving 53,000 civil servants out of London
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Our latest research has recommended £371 million of savings that can be found by moving 53,196 civil servants out of London to fast track the “levelling up” policy.
Currently, London-based civil servants cost a total of £1.2 billion a year, and more than four-fifths of government departments have a disproportionate amount of staff in the capital. Shifting roles to other parts of the country would offer savings on costs such as the London weighting, as well as move policy-making away from Westminster.
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The TPA recently paid a visit to Darlington where the Northern Campus of the Treasury has recently been constructed. The government should use it as inspiration to relocate civil service jobs around Great Britain. We spoke to local MP Peter Gibson who was full of praise and highlighted the huge economic benefits that result. Click here to watch our report from Darlington.
Moving civil service jobs out of London is both good for taxpayers and for getting government out into the real world. Paying for the prime location of Whitehall pen-pushers costs a small fortune, with operating costs alone running into the hundreds of millions, while keeping policy-making jobs locked in the capital.
Roles should be relocated so that the civil service can be better opened up to the rest of the country and sensible savings can be made.
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TaxPayers' Alliance in the news
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Right to Recall - second jobs for MPs
The debate over members of parliament holding second jobs continues to rumble on and yet again the TaxPayers' Alliance is leading on this very important issue.
Speaking to talkRadio presenter Mike Graham, our media campaign manager Danielle Boxall told listeners across the country that they are the ones that should have the ultimate say - arguing the need for a proper right to recall!
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The current system that allows voters to recall their MP isn't up to scratch. We are calling for change. The electorate should ultimately decide whether to recall their MP.
If you haven't done so already please join thousands of others and sign our Right to Recall petition - do share it with your friends and family too!
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Plush pay packets for care bosses
We often hear that the health service is facing a cash crisis. But as the Daily Mail revealed is this at all surprising when ambulance trusts give out generous pay packages?
According to the newspaper, "eight NHS ambulance bosses were given bonuses worth up to £20,000 this year - despite heart attack and stroke patients now having to wait almost an HOUR to be taken to hospital." One chief exec saw his salary increase by £50,000 to £235,000 last year.
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Asked for her thoughts Danielle once again stood up for taxpayers, saying, "We keep hearing the health service is facing a cash crisis, and it's little wonder when ambulance trusts give out generous pay packages like these. Not only is this an insult to taxpayers, but it's even worse for the patients who have suffered because of mismanagement."
Taxpayers' hard-earned money should go towards treating the sick, not feathering the nests of the top brass.
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It’s no wonder Slough council is bankrupt
There seems to be little improvement in the fortunes of Slough council as I wrote in my regular column for ConservativeHome this week. Once again questionable spending decisions have been made.
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The bankrupt local authority has a plan to turn its fortunes around with its “Our Futures Programme” which aims to make the council a “world class organisation.” A recent workforce update from the programme reveals that 59 staff are set to be made redundant, costing £2.6 million.
But perhaps even worse, the cost to the taxpayer of consultants to help facilitate the transformation to “world class” was nearly £2.1 million! Is it any wonder there’s no money left? Click here to read the full story.
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A tax on responsibility?
If there's one tax in my opinion that doesn't get as much coverage as it should then it's Insurance Premium Tax (IPT). As our operations director Sara Rainwater writes, she considers herself a responsible adult, like the vast majority of the population, so why is IPT levied on people who are just being responsible?
It was first introduced in 1994 by chancellor Ken Clarke as a means of raising tax from the insurance sector, which was deemed under-taxed and exempt from the VAT regime. It is applied to most forms of insurance including home; car; pet; travel; and private medical care.
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But for taxpayers across the country, many of these are features of everyday life - in the case of cars, we’re legally obligated to purchase cover and pay the tax!
IPT is one of those niggly little taxes that penalises people for doing the right thing. The chancellor says he wants to lower taxes, so he can make a start by reforming IPT and protect responsible taxpayers from this punishing premium.
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TPA welcomes council savings
Test Valley Borough Council in Hampshire has made a splash after it was revealed the authority has cut its stationery costs by £50,000 in the last five years. This is exactly the sort of attitude the public sector should be showing towards taxpayers' cash.
The council should be congratulated for these savings. Residents are fed up with their council tax bills shooting up, but covid has revealed some simple savings which can relieve financial pressures and offer environmental benefits too.
Test Valley must lock in these reductions for the long term, and pass the advantages of staying paperless onto hard-pressed residents.
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Harry Fone
Grassroots Campaign Manager
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