Scrap ‘sneaky’ National Insurance, says PwC Citizens’ Jury
Aug 2014 05

PwC senior economist and former Bank of England Monetary Policy Committee member Andrew Sentance has called for political parties to embrace a ‘serious tax overhaul’ in an article for the Telegraph. The ‘Citizens’ Jury’ convened by the consulting group recommended substantial tax reform which echoes much of the findings of our own 2020 Tax Commission’s Single Income Tax.

The group’s report, ‘Taxation in the UK: a citzens’ view‘, recommended ending the slab rate structure of Stamp Duty, abolishing Inheritance Tax and abolishing National Insurance, replacing it with a single tax on income. It reported on the views of a panel of 22 members of the public selected to broadly represent national demographics. Perhaps unsurprisingly, they found that National Insurance was ‘sneaky’, that the system ‘should just be upfront’ and that it ‘should all be rolled into one’. They also objected to a Mansion Tax.

Not all the recommendations were advisable. Calls to change the rules on VAT to include non-essential foodstuffs such as caviar, for example, would lead to a field-day for lawyers with an inevitable slew of new legal questions along the lines of whether Jaffa Cakes are ‘cakes’ and so excepted from VAT or ‘biscuits’ and therefore subject on account of being chocolate covered. The argument against expanding VAT was best made by Telegraph deputy editor (and chairman of the 2020 Tax Commission) Allister Heath in his recent column.

Perhaps most interestingly of all, the group backed the principle of a single rate of Income Tax but nonetheless shied away from recommending it. They thought that a single Income Tax rate ‘felt fair’ and had benefits in terms of simplicity, clarity and transparency. But they did not want to implement such a system now because they rightly opposed increasing benefits to ensure nobody would be worse off:

I think if we were one of those states after the breakup of the Soviet Union, this would be the one to go for. But you just can’t do it here and now, can you?

Here’s the thing: yes, you can. But it requires a serious rethinking of what the Government is for and what it needs to do. As our 2020 Tax Commission found, you can implement a Single Income Tax at a rate of 30 per cent, which would provide a cut for all taxpayers. That would raise 33 per cent of national income for the Treasury, compared to the 37 per cent the current system raises. In other words we’d need a Government like Switzerland or Australia’s rather than Spain or New Zealand’s.

Not only would such a system be much clearer, simpler and fairer, it would also provide significant economic benefits by sharpening incentives to work, save and invest in Britain. Dr Sentance is right, politicians should take note.

TaxPayers’ Alliance reveals the 2,181 council staff earning more than £100,000
Aug 2014 05

The TaxPayers’ Alliance is proud to present the eighth Town Hall Rich List, the Who’s Who of senior local government executives which details the job titles, full remuneration and many of the names of all local council employees whose remuneration exceeds £100,000.

Praised in the past by politicians on both sides of the House of Commons, the Town Hall Rich List remains the definitive guide to senior executive pay in local government, making it a vital tool for taxpayers wanting to judge which authorities are delivering the best value for money.

Click here to read the full report, including detailed breakdowns for each council

Click here for the data in an excel spreadsheet

Executive pay in many town halls across the UK continues to be insulated from economic reality, despite the urgent need to find savings and the fact that many councils claim that they have insufficient cash to fund frontline services, and enforce pay freezes on their rank and file staff.

The key findings of the research are:

  • There were at least 2,181 council employees who received total remuneration in excess of £100,000 in 2011-12, a fall of 5 per cent on the previous year’s 2,295.
  • Despite this, 93 councils increased the number of staff who received remuneration in excess of £100,000 in 2011-12.
  • These six-figure remuneration packages cost the taxpayer nearly £300 million in 2012-13
  • Knowsley Council more than doubled the number of staff who received remuneration in excess of £100,000 in 2012-13 to 15, the biggest increase of any local authority.
  • The figure of 2,181 is almost certainly an underestimate. The opacity of some councils’ accounts makes it impossible to separate teaching staff from council staff. To ensure accuracy, any data about which we were unclear and would have shown more council employees receiving £100,000 or more in 2012-13 has been omitted.
  • In 2012-13, there were 542 council employees who received remuneration over £150,000.
  • Of these, 34 council employees received remuneration in excess of £250,000.
  • The council with the most employees in receipt of remuneration over £100,000 in 2012-13 was Glasgow with 32. There were 52 councils with at least 10 employees receiving more than £100,000 in 2012-13.
  • The council employee with the largest remuneration package in the UK in 2012-13 was David Crawford, the Executive Director of Social Care Services at Glasgow Council who received £486,303. That total included a considerable redundancy package.
  • The highest paid council employee, excluding larger than usual, one-off payments due to redundancy or retirement, was received by I. Craig, Managing Director of Lothian Buses, a subsidiary 91 per cent owned by the City of Edinburgh Council who received £300,081.
  • The highest paid council Chief Executive not in receipt of one-off payments due to redundancy was Paul Martin, Chief Executive of Wandsworth Council, who received £274,224.
  • The largest remuneration package in Wales in 2012-13 was received by Jonathan House, Chief Executive of Cardiff Council, who received £258,006. Cardiff Council also had the most employees receiving remuneration in excess of £100,000 in 2012-13 with 9.
  • The largest remuneration package in Scotland and highest in the UK was David Crawford, Executive Director of Social Care Services at Glasgow Council, received £486,303, in 2012-13. Glasgow also had the most employees receiving in excess of £100,000 in 2012-13 with 32.
  • The largest remuneration package in London in 2012-13 was Paul Martin, Chief Executive of Wandsworth Council, who received £274,224. Wandsworth also had the most employees receiving remuneration in excess of £100,000 with 29.

Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance, said:

It is good news that the number of senior council staff making more than £100,000 a year is falling, although that may only be because many authorities have finished paying eye-watering redundancy bills.

“Sadly, too many local authorities are still increasing the number of highly paid staff on their payroll. It’s particularly galling in places where councils are pleading poverty and demanding more and more in Council Tax. Taxpayers expect their council to be filling potholes, not pay packets. Many rank-and-file staff in local councils will be equally appalled – at a time when councils across the country are freezing pay, it appears the money they’re saving is being used to line the pockets of town hall tycoons.

Destination Luton for APD Campaign
Aug 2014 01

On Thursday, five people and a cardboard cut-out set out on a noble quest: to persuade the good people of Luton Airport to support our campaign to abolish Air Passenger Duty (APD), a tax levied on all people flying out of the UK. After marching dramatically (well, taking a train) to Luton Airport, we set up a stall in the lobby outside the departure lounge, put on our armour (TaxPayers’ Alliance t-shirts) and primed our clipboards for battle. Armed with facts and figures, we were prepared. Continue Reading

Treasury cashing in on housing crisis with Stamp Duty ratchet
Aug 2014 01

The Treasury is cashing in on the housing crisis with Stamp Duty revenues approaching record numbers and millions more being dragged into the punitive, higher rates, according to figures from Nationwide and the Office for Budget Responsibility.

Despite the number of home sales being significantly below those for the 12 months to October 2007, when Stamp Duty revenues peaked at £10.6 billion, the building society estimated revenues have soared to a total of £10.2 billion for the 12 months to June. Continue Reading

Holiday Tax Campaign Arrives in Liverpool
Jul 2014 31

On Wednesday, three of us from Tufton Street made our way to Liverpool John Lennon Airport to continue our week of campaigning against Air Passenger Duty (APD), calling on the Chancellor to axe the hated Holiday Tax.

Two lattes, three trains and four hours later, we finally arrived and unpacked. Our stand was set up just as holidaymakers headed to departures, which meant we had an audience of flyers who at this time of the year are all too aware of the painful effect that APD has on the price of going away. Continue Reading

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