The Liberal Democrats have proposed an increase in Capital Gains Tax (CGT), currently charged at 28 per cent for higher and additional rate taxpayers. They claim increasing the rate to 35 per cent will raise and extra £500m to fund an increase in the personal allowance in 2015-16.
There are a number of major problems: Continue Reading
Norman Lamb MP – the Liberal Democrat Minister for Care and Older People – gave a very interesting speech at the party’s Conference in Glasgow earlier. Ostensibly a speech about the NHS, Lamb made a few points which are worth picking up on that suggest the TPA’s campaigning on the deficit, and public debt, are getting through to politicians.
I wrote for the Telegraph on the implications of the Prime Minster’s tax announcement at the Conservatives’ conference in Birmingham:
The big announcements in David Cameron’s conference speech were a commitment to raising the personal tax allowance from £10,000 to £12,500 by 2020, and the level that people start paying the 40p higher rate from £41,900 to £50,000. Here, we explain the impact – both on the Government’s finances and your own.
The place to be at this Conservative Party Conference certainly wasn’t the Main Hall.
This year, the TaxPayers’ Alliance joined with the Institute of Economic Affairs, Business for Britain and the Free Enterprise Group of MPs to host ThinkTent, a hub of open debate and honest opinions. Most events were standing room only, with the ThinkTent even acquiring a permanent detachment of conference security guards who feared that the overcrowding might lead to a fire risk. Many events had to be run on a “one in, one out” basis with queues stretching around the block!
The explanation for the popularity of our well-appointed tent was apparent from the very first event on the European question with the Rt Hon Owen Paterson MP entertaining a packed out crowd, and the quality of the speakers stayed consistently high throughout. One of our security guards confessed that he was very much enjoying his station since he could listen in on what were at times quite heated debates. When asked why they had been queuing for more than half an hour, one delegate told me that our events were the best available.
ThinkTent wasn’t just popular amongst conference delegates but made the front page. John Redwood’s comments on business and politics hit the front page of the Financial Times, and the Morning Star described how the Rt Hon Francis Maude “sucked up” to “fans” of the TaxPayers’ Alliance with comments that he’d like to bring the tax burden down. Journalists were there for more than our excellent wifi connection – they were there for stories.
The response to ThinkTent was overwhelmingly positive and there was plenty of praise for the TaxPayers’ Alliance too. Steve Baker MP praised our 2020 Tax Commission and Conor Burns MP described our ability to hold politicians’ feet to the fire. The highest praise we received however, came from the Rt Hon Eric Pickles MP, Secretary of State for Communities and Local Government.
“The TaxPayers’ Alliance are my favourite organisation,” said the MP for Brentwood and Ongar at our Sunday night reception. “They don’t ask me for grants, and they never will.”
Our kind thanks must go to Mastercard, who sponsored the ThinkTent. The planning for next years starts in earnest now.
Responding to the Prime Minister’s speech at Conservative Party Conference and the announcement of two major taxation policies, Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance, said:
“This was a positive speech for taxpayers, with tax cuts for the lowest paid and long-overdue relief for ordinary people being clobbered by the higher rate of tax. Leaving more of people’s money in their own pockets is not just morally right, but the best way to promote economic growth and long-term prosperity. Taxes in Britain have been too high for too long, and the Prime Minister is absolutely right to want to bring them down for hard-pressed working people.
“The next step must be to bring National Insurance thresholds in line with Income Tax, taking those on the lowest pay out of tax altogether.”