They say a week is a long time in politics and this week was no exception.
The Conservatives have now ousted their second leader and prime minister in less than four months. Whilst the latter half of the week saw revolt and resignation, Monday saw the end of the government’s ‘low-tax, high growth’ agenda.
Halloween may still be a week away but that didn’t stop Jeremy Hunt embarking on a tax-hiking horror show. Having pressed ahead with raising corporation tax, Hunt abandoned cuts to income tax, alcohol duties, and the damaging IR35 rules for the self-employed.
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Any measure that might have eased the cost of living crisis for taxpayers was abandoned..
Mercifully, the Health and Social Care levy had already been revoked, and cuts to stamp duty were maintained.
After poring over the details, we didn’t mince our words. Our chief executive, John O’Connell, really captured the mood declaring: “The light at the end of the economic tunnel has now been extinguished by this Chancellor. To get a grip on this crisis, the government needs to lay out a serious plan for necessary spending reductions, including means-testing energy support measures.”
With our media phone ringing off the hook, it was no surprise that our reaction led the coverage in Britain’s papers!
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At time of writing, we don’t know who will be the next prime minister (or if we’ll have yet another new chancellor), but it’s clear the voice of taxpayers has never been more needed. The next administration must prioritise tackling the cost of government crisis by getting a grip on spending and easing the burden on taxpayers.
Click here to support our campaign!
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TaxPayers' Alliance in the news
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Petrol premium
With the price of fuel having rocketed recently (though thankfully now coming down slightly), our research team released shocking statistics showing just how much fuel duty is really costing us.
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Not only does the UK have one of the highest fuel duties in Europe, using our dynamic tax model, we showed that cutting fuel duty to the level of Hungary, the lowest in the EU, would drive up GDP by a whopping £26 billion.
John took to The Sun to call for a "proper permanent cut". Quite right too!
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Expensive emails
TPA staff were astounded this week to hear that the NHS had spent a massive £45 million transferring emails…
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In comments to the Daily Mail, TPA digital campaign manager, Joe Ventre, condemned the stupefying spend saying "NHS bosses need to get a grip on these wasteful IT projects."
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Bad news for borrowing
Government borrowing in September rose to a massive £20 billion according to the Office for National Statistics.
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We've been calling out the cost of government crisis since 2015. TPA chief economist, Duncan Simpson, summed up the situation, telling Daily Express readers "Surging borrowing is bad news for Brits facing a punishing tax burden."
It really is high time the government took spending seriously and gets the national debt under control!
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Troublesome tanks
After five years of delays and £3.2 billion of taxpayers cash being spent, the Army’s Ajax tank procurement program has yet to produce a single working tank!
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With news this week that the program may be scrapped, John told MOD bureaucrats some home truths in the Daily Mail, blasting: "Taxpayers will be furious at this disgraceful use of their cash."
The TPA will continue to call out dodgy defence deals.
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The hidden cost of inflation
After the latest CPI figures were released on Wednesday, new TPA researcher, Dr Mike Jones, took a look at the costs behind the headline.
In a thought-provoking explainer, he estimates that the government will have to spend £32 billion more in revenue in 2023 (paid for ultimately from future taxpayers) than it did in 2020. If other optional increases are included, then that figure jumps to £43 billion!
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Outlining how inflation drives up the cost of public spending and needs to be properly discussed, Dr Jones declares: "These huge sums should weigh on the minds of politicians who doggedly insist that all these benefits should rise by inflation - rather than, say, the (currently) more modest figure of earnings. These are big political decisions, worthy of debate."
Mike also explores the costs of uprating public sector pensions, concluding: “It’s high time these over-generous pension schemes were closed and public sector benefits brought in-line with those that people in the private sector (who pay for the public sector) can get.”
Well said! An excellent and highly recommended read.
Read the blog here
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Barrow borough council’s black bin policy wins this week’s waste award. Town hall bosses have decided to bring waste collections in house at a cost of £1.1 million to local taxpayers!
With auditors highlighting the council’s " significant weaknesses", you have to question the wisdom of giving them direct responsibility for arranging rubbish rounds that ratepayers have to cover.
Let me know if your council is up to similar shenanigans. |
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Benjamin Elks
Fundraising, Operations, and Events assistant
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