New TPA analysis, published exclusively in this morning’s Sunday Telegraph, shows the devastating impact Jeremy Hunt’s corporation tax hike will have on economic growth. The TPA joins three former chancellors in calling for the rise to be scrapped.
Using our dynamic tax model, built in conjunction with Europe Economics, our team revealed that the chancellor’s plan to dramatically increase corporation tax in April is estimated to hamper the UK economy by £30 billion.
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We can already see the effect of the planned increase with AstraZeneca’s announcement that it would locate a new manufacturing plant in Ireland rather than the UK. The company’s CEO Pascal Soriot specifically cited the UK’s “discouraging” tax regime.Â
Our chief executive, John O’Connell, hit the nail on the head saying: “An investment shortage lies at the heart of our economic woes, and scaring off successful firms will make the problem worse.”
Our findings received a ringing endorsement from Ranil Jayawardena MP, founder of the Conservative Growth Group. The senior Tory MP said: “Targeted tax cuts are a powerful tool to boost economic growth. This model from Europe Economics shows that simply not increasing Corporation Tax from 19 per cent to 25 per cent would create jobs, encourage investment and help pay for itself.”
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Whilst these findings may seem obvious, government figures continue to ignore the dynamic effects of cutting tax, boosting revenue as well as growth. Join us in our battle against the tax-hiking status quo by donating to our campaign here.
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TPA Talks… woke Whitehall
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This week saw the release of the latest instalment of TPA Talks. In this special episode, we spoke to Emma Webb, UK director of the Common Sense Society, and Kevin O'Sullivan, hard-hitting TalkTV presenter, about the rise of "woke" waste in the public sector. Our panellists set their sights on everything from arts funding to six-figure salaried diversity managers, and explain how these right-on practices are costing taxpayers a fortune.
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As Kevin says: "The money [the public sector] spends on diversity - you might as well take it and put it down a hole, and set fire to it!" If you want to see diversity, equality and inclusion roles in the public sector scrapped, sign the petition here!
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TaxPayers' Alliance in the news
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Arrogant aunty
When the director general of the BBC, Tim Davie, boasted this week about people being forced to pay the TV tax, many were annoyed by the sneering attitude of the state broadcaster. John took to the airwaves to stand up for fee payers.
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As John laid out on TalkTV: “It is amazing what they’re pulling off, when the BBC licence fee consistently polls as one of the most unpopular taxes.” Households should no longer be bullied into paying this BBC scam. It’s high time the licence fee was scrapped once and for all. Read about our plans for doing away with this hated TV tax.
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Tobacco’s taxed enough already
When it emerged this week that tobacco taxes look set for a record rise, we weren’t about to let this regressive tax go unchallenged.
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Speaking to The Sun, I explained that: “Smokers already pay vast sums to the Treasury. Tobacco taxes are high enough, without yet another damaging increase.” The comments were picked up by many local papers and even social media based publication LadBible!
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Diplomatic privilege
The Labour party’s ongoing TPA-style campaign against waste continues. This week it  revealed the shocking sums being spent sending the children of diplomats to some of the country’s top private schools.
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Our managing director, James Roberts, slammed the latest figures, telling the BBC and The Times: “While it's understandable that diplomats want the best education for their kids, we don't need to subsidise sending their children to our most elite public schools.”Â
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The receptionist will see you now
We all know how difficult it can be just trying to call your GP, let alone actually getting an appointment. So we were naturally astonished to find that receptionists actually outnumber GPs in English practices.
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TPA researcher, Dr Mike Jones, got straight to the heart of the matter saying: “With huge pressure on the NHS, this smacks of misplaced priorities. NHS funds should be focused on employing clinical staff to meet patients' demands.”
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Consequences for Croydon
This week’s blog is guest written by Michael Swadling, from our friends at Croydon Constitutionalists. With the council having recently declared bankruptcy for the third time and planning a 15 per cent hike in council tax, Mike brings us a deep-dive look at how the people of Croydon found themselves in this mess, and what might happen next.
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As Mike explains: “Were it not so impactful on those who can least afford it, you could almost admire the thoroughness with which the council undertook its hatchet job on the borough’s finances.” Click here to read this insightful dispatch from the grassroots.
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Cutting council tax is not impossible
We usually give this section over to stories of town hall bosses behaving badly with your cash. This week, I am delighted to share with you the story of Fenland district council, who should be an example to all councils looking to avoid dipping further into residents' pockets.
Having frozen council tax for the last four years, the council will this year be cutting their rates by 2 per cent! As the council leader, Chris Boden, said: “ Thanks to good financial management, we've been able to achieve this while still delivering excellent services for local people.” Bravo! Think of Fenland next time we are told council tax rises are inevitable.
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Benjamin Elks
Operations Manager
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