The Saturday papers are the most read all week. So it was fantastic to have space in The Sun for a full-page feature on how we can save to spend on health and social care instead of hiking taxes.
Our chief executive John O’Connell came up with eight ways to save money, including slimming down on pointless quangos and eradicating wasteful spending on absurd items like hot tubs and premier league season tickets. John said that there’s more we can do as patients, too - like turning up for appointments when they’re booked. If you can get one, that is! We need hard work and ingenuity to drive growth and get us out of the economic mess we’re in, so a tax hike on those in work is precisely the wrong thing to do.
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As pressure grows on the government to scrap this punishing tax rise and address the cost of living crisis, our media campaign manager Danielle Boxall took the opportunity to remind our elected officials of the urgent need to change course.
Speaking outside parliament, Danielle said "Politicians need to get real. Now is not the time to be whacking up taxes on jobs, or making it more difficult to pay the bills." Well said!
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We’ve got more exciting research landing next week to really drive home just how big the tax burden has become - make sure to keep your eyes peeled!
Have you seen money being wasted in the NHS? Tell me about it
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BBC licence fee prosecutions set to double
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On Thursday lunchtime the TaxPayers’ Alliance descended on Broadcasting House to slam BBC bosses for plans to prosecute almost three quarters of a million people for non-payment of the licence fee.
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The day before, a BBC bigwig confirmed TPA estimates that annual prosecutions are set to double, which could take the number of people prosecuted for TV licence evasion to 742,518 by 2027, when the government promises to tackle the hated TV tax.
Our policy analyst, Darwin Friend, took to the airwaves on Friday to explain what we’d found.
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Speaking to Jeremy Kyle, Darwin explained that public opinion had shifted and now was the time for government ministers to act. In response to BBC bosses claiming there was "strong support" for the licence fee, he told listeners: “Quite frankly, I think the reverse is true. Licence fee payers are actually fed up of having to pay this. Polling consistently shows us that the licence fee is incredibly unpopular.”
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TaxPayers' Alliance in the news
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Treasury minister resigns over covid fraud losses
One thing we’ll be keeping a keen eye on over the coming weeks is the amount of taxpayers’ money lost to fraud through covid schemes, such as Bounce Back Loans. The National Audit Office has already shown that a massive £4.9 billion from the scheme was accessed fraudulently, and the apparent lack of government action led Lord Agnew to step down from his Treasury role.
John O’Connell appeared on BBC Radio Scotland to tell listeners that £4.9 billion is the equivalent of a cut in 1p in the basic rate of income tax.
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When the scheme was launched, with understandable speed, we urged the government to amend the Fraud Act so that harsher penalties - and more prison time - could be put in place for those caught stealing from taxpayers.
We’ll be asking what else can be done now to claw back taxpayers’ money.
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Should taxes rises during a cost of living crisis?
Darwin Friend was also on talkRADIO on Saturday morning to discuss tax rises and the increasing squeeze on the cost of living.
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Darwin told presenter Peter Cardwell that “taxpayers can’t afford this tax rise at this time” and corrected the notion that this was a minimal increase, pointing out that this is “really a 10 per cent rise in how much people are going to be paying.”
If this hike weren’t enough, taxpayers are also facing an increase in energy bills and a 70 year high tax burden.
The solution? Well, as Darwin pointed out: “Because economic growth in the UK has been higher than expected, it meant that borrowing has been £12.5 billion lower than was forecast. This actually pays for what the entirety of the funds the national insurance rise is going to raise.”
Spot on yet again Darwin!
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Bonus bonanza for Commons' staffers
As taxpayers across the country batten down the hatches, it has been reported that almost a million pounds (£951,000 to be precise) was given out in "reward and recognition" payments to parliamentary staffers last year, according to the 2020/21 figures from the Independent Parliamentary Standards Authority (IPSA).
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John was quick to remind parliamentarians that: "The electorate expects politicians to stay grounded and keep costs under control, particularly as the Covid pandemic saw many MPs and their staff work from home. With taxpayers facing a cost of living crisis, limiting unnecessary bonuses would be a welcome way for MPs to show their constituents they're keeping spending down."
Earlier this month, TPA research revealed that the cost of the average MP had risen by 30 per cent during the pandemic.
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Gold-plated public sector pay and ballooning travel bills
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While hardworking Brits wrestle with the fallout of the pandemic, many have seen their livelihoods upended. Mandarins may have given up their plush Whitehall offices in favour of working from home, but they've not relinquished their bumper salaries. When news broke of nearly 600 civil servants taking home over £150,000 last year, we were quick to point out that it's hard-pressed taxpayers who will be made to pick up the tab!
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Speaking to talkRADIO's Kevin O'Sullivan, Danielle Boxall reminded listeners that - concerning as these figures are - taxpayer-funded six-figure remuneration packages are far more widespread than just the civil service, warning that: "This is not just a Whitehall problem, this is endemic across the entire public sector!"
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But Danielle didn't stop there... According to The Telegraph, the cost of ferrying Treasury civil servants between Whitehall and its new offices in Darlington has already reached £15,000. At the TaxPayers' Alliance, we've long argued for more civil service jobs to be moved out of London in an effort to cut costs. But it seems the government haven't fully committed to our plans.
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Danielle explained in her comments to the paper, “Moving civil service jobs out of London was supposed to be about making sensible savings, not expensive excursions. Some travel is unavoidable, but when many are holding their meetings online, departments can practice what they preach and do the same.” Hear, hear!
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Inflation: the tax imposed without representation
With inflation now at 5.4 per cent – the highest rate in 30 years – we could be witnessing the consequence of high levels of borrowing. Last year alone the government borrowed £303 billion, or 14.5 per cent of GDP - a peacetime record. Should we really be surprised that inflation is set to reach 6 per cent by spring?
As our researcher Scott Simmonds examined this week, failure to control inflation is hurting hard-working taxpayers who'll ultimately have to pay for the government's inability to get a grip on the issue.
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Given the UK’s current financial position, surely the government is looking to limit spending and cut taxes? In fact, the opposite is happening. According to the latest figures, the public sector has actually grown by 232,000 employees since the start of the pandemic.
Milton Friedman once said: “Inflation is a tax, which is imposed without representation, and which nobody has to vote for.” This ‘tax’ we are seeing now is the result of choices the government has made and continues to make, which we are all paying the price for. Click here to read more.
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Should council staff get an extra day off?
As I wrote in my ConservativeHome column this week, Gwynedd council is set to give its staff the day off for St David's day. It is of course understandable and indeed patriotic that they wish to honour this historic day. However, at an estimated cost of £200,000 to the public purse, I seriously urge them to reconsider.
Looking through the council’s website, I would suggest that staff already receive generous leave and benefits. I suspect many who work in the private sector – particularly those on lower incomes who are more greatly impacted by council tax – can only dream of such perks.
Last year council tax in Gwynedd increased by 3.9 per cent. Its Band D bills are £107 higher than the average for Wales. At £1,838, it has the sixth-highest bills in Wales for 2021-22. Shouldn't staff be at their desks and working hard to root out wasteful spending?
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Harry Fone
Grassroots Campaign Manager
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