Alarming news this week as a leaked report from the independent review into HS2 recommended that the project should go ahead despite soaring costs. The review seems to have taken the approach of accepting the project will go ahead, acknowledging the crippling issues, but simply looking for new ways to justify them.

The chairman of the review, Douglas Oakervee claimed there are no "shovel-ready" alternatives to HS2 despite our own report, The Great British Transport Competition, suggesting several back in May of this year. Indeed one of the judging panel for our report was deputy chairman of the review Lord Berkeley who has been highly critical of Mr Oakervee's conclusions, calling the report a "whitewash". He also said he cannot support the findings and that there was reluctance from the review's chairman and officials to delve more deeply into the true costs of the project.

In May the TPA joined forces with Stop HS2 campaigners at Euston

In light of the report and with the budget edging ever closer to £100 billion I wrote a piece for Capx explaining why HS2 is such a disaster. I argued there is simply no business case for this vanity project:

"A recent research paper from the Adam Smith Institute puts HS2’s benefit-cost ratio at a thoroughly underwhelming 0.78. This means that the Government will effectively be losing 22 pence for every pound of taxpayers’ money it spends. No sane government, company or individual would allow such a loss-making project to go ahead. The business case for this expensive white elephant is disappearing before our eyes."

HS2 will never deliver on its promises and we must not lose sight of the fact that the original price tag was £32.6 billion. The final bill is likely to be more than triple this. The prime minister would do well to scrap it and use the money to fund big investment in regional transport projects instead.

Let me know your thoughts on the leaked report.

Burdens on business tour

On Thursday my colleagues, John O'Connell, Kieran Neild and I promoted the work of the TaxPayers' Alliance at the North East Expo in Newcastle. It was a great opportunity to chat to business owners about the numerous tax and regulatory challenges they face.

Many were angered that excessive taxation limited how much they could re-invest in their companies. The final leg of our tour for 2019 will see us in Exeter on Wednesday next week, come and say hello if you are attending. More details below.

South West Business Expo
When: Wednesday 20th November, 9.30am to 3.30pm
Where: Westpoint Arena, Exeter (map)
southwestbusinessexpo.co.uk/book-your-tickets/

HS2 should hit the buffers

Following the release of the leaked HS2 report our research director, Duncan Simpson, was asked for his take by LBC. Speaking to presenter Jim Diamond, Duncan said the vanity project should have been scrapped long ago and the money spent on a number of other transport infrastructure projects such as those outlined in The Great British Transport Competition. Click here to listen to a clip.

Voters want tax cuts

Following on from last week's landmark polling our chief executive John O'Connell wrote an op-ed in the Sunday Telegraph stating the case that working class voters want tax reductions rather than "government giveaways". John writes:

"Spending levels and taxes have consistently risen [in the last 30 years], to the point that the tax burden is at its highest for half a century. As David Cameron has acknowledged, austerity didn’t do everything it said on the tin. It’s therefore unsurprising that the public is not clamouring to pay more tax."

Politicians must not fall victim to the "Workington man" stereotype and realise that many voters want to keep more of their hard earned money.

Tax cuts must be priority for next government

In the same vein our new campaign manager Sam Packer penned an excellent piece for the Yorkshire Post examining the large spending plans put forward by Labour and the Conservatives. Sam argues that tax rises will be needed to pay for more government spending and voters won't be happy:

"For many people, this election will feel like Hobson’s choice; whoever wins, we seem likely to get big spending and higher taxes. It’s not surprising therefore that taxpayer voters are fed up...More than half of the voters we polled wanted the basic rate of income tax cut by a quarter and over three-quarters backed a cap on council tax rises."

Council tax rises

On Monday morning I was invited on BBC Coventry & Warwickshire radio station to discuss the news that council tax is set to increase by 4 per cent for many in the region. During my interview with presenter Victoria Minett I explained that many councils are still not managing money effectively. She was shocked to learn of the many bumper salaries paid to execs at Coventry council. Click here to listen to a clip.

Click here to see how much council tax increased across the country last year.

We are looking for a new Digital Campaign Manager. If you can create graphics, edit videos and manage multiple social media accounts and you believe taxes should be lower, apply now!

Click here to find out more about the role.

The future of council tax

The Institute for Fiscal Studies (IFS) published a report earlier this week on their recommendations for funding local government in England. The report rightly identified that the current system isn't fit for purpose and there is a funding shortfall for adult social care. Writing for the TPA blog I pointed out the problems with their solutions, particularly the creation of what I dubbed an "English income tax":

"More local tax powers could help align government spending with local priorities tailored to local circumstances. But the IFS’ conclusion that the answer lies in a new nationwide tax neutered of its local control misses the point and would leave taxpayers in England with a new 'English income tax'. Particularly concerning is the risk that their proposal could raise overall tax bills at a time when the tax burden is already at a 50-year high. Local taxes should not be introduced purely with the aim of raising revenue."

Councils should prioritise eradicating wasteful spending; they splash cash on everything from bumper pay rises for council fat cats to failed energy companies and shiny HQs they can’t afford. Furthermore as a recent TPA report showed, savings of up to £5.9 billion per year could be made if more technology and automation were embraced in the social care sector.

Let me know your thoughts on your council funding

Council welcomes another fat cat

Following on from my interview on BBC Coventry & Warwickshire we learned that a new permanent £100k plus job has been created at Coventry City Council. This in spite of the fact the council is running a £16.7 million budget deficit.

The new Director of Business, Investment and Culture will be paid a salary of up to £117,028 a year. The council simultaneously announced public spending cuts which will come as an insult to local taxpayers. Residents are bound to demand answers as to why their council has prioritised a fat cat salary over public services.

Citing our widely publicised Town Hall Rich List 2019, local reporter Tom Davies revealed that it would make the new director the sixth highest paid employee at the council. Instead of mega salaries for council bureaucrats, spending should be focused on front line services and trying to balance the books.

Email me if you know of examples of wasteful spending in your area.

Harry Fone Grassroots Campaign Manager

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