TaxPayers’ Alliance calls for urgent action on spending to pave the way for real and lasting tax reform
On this morning's The Andrew Marr Show Ed Balls was challenged on our Spending Plan, with Andrew Marr citing our proposal to abolish entire government departments in a discussion on the steps needed to balance the books.
George Osborne will this week deliver the final Budget of this Parliament. He should use the opportunity to map out a strategic programme of spending reductions and tax reform.
In detail, the TaxPayers’ Alliance recommends:
- Outline which proposals from the TPA's landmark research project The Spending Plan he would implement
- Come clean to the public and outline a specific programme of spending reductions needed to meet fiscal targets
- Set about departmental reform by announcing plans to close the Department for Culture, Media and Sport along with the Department for Business, Innovation and Skills, transferring some responsibilities such as higher education to other departments
- Scrap the HS2 white elephant and use some of the money saved for better value rail and road projects
- Re-start the process of assessing the role of every single public body and abolish those that are no longer required
- Tackle wasteful spending: one existing Minister in each Department should be given the additional responsibility of rooting out waste in their respective Department and implement more stringent budgetary processes
- An end to the NHS ring-fence so that wasteful practices can be eliminated, and challenge the NHS to find savings and prioritise frontline services
- Keep promises to cut Inheritance Tax and announce plans to abolish it in the medium term, as recommended by the final report of the 2020 Tax Commission The Single Income Tax
- Press ahead with rumoured cuts to taxes that increase the cost of living, like Beer Duty
- Rename National Insurance as Earnings Tax, to properly reflect its true function as a parallel system of income tax on employment earnings. Further, bring the 'Earnings Tax' threshold up to the same level of Income Tax, giving millions of people on low incomes greater reward for their work
- Further, the Chancellor must report on the 2011 Consultation into plans to merge Income Tax and National Insurance
- Flesh out proposals to increase the 40p threshold, and consider indexing it to earnings to eliminate fiscal drag
- Extend the use of dynamic modelling used in last year’s Autumn Statement to all fiscal policy announcements. Dynamic analysis should be required for all fiscal policy changes announced by politicians
“Politicians seeking our votes owe it to all taxpayers to come clean about the spending reductions needed, and our fully costed Spending Plan should be the first port of call for those seeking detail on how this could be done. This final Budget of the Parliament should also lay the groundwork for the real and lasting tax cuts hard-pressed families so badly need and to restore trust in our broken tax system.”
Together with the Institute of Economic Affairs, we will be hosting a post-Autumn Statement briefing on the morning of the 19th March in Westminster. Further details can be found in the Notes to Editors below.
Call 07795 084 113 (no texts)
Political Director, TaxPayers' Alliance
24-hour media hotline: 07795 084 113
Notes to editors
2. Last week the TPA released its fully costed Spending Plan, a landmark research project detailing how the next government can save £50 billion a year by 2020. More details are available here.
3. The TaxPayers' Alliance and the Institute of Directors convened the 2020 Tax Commission and it reported in May 2012. The final report, The Single Income Tax, shows to abolish a number of taxes and implement real reform, cutting taxes for all and drastically simplifying the system.
4. Our Post-Budget Briefing will be held on Thursday 19 March 2014, 9.15am for 9.30am at The TaxPayers' Alliance, 55 Tufton Street, London SW1P 3QL. Bacon sandwiches will be available along with tea and coffee. Speakers include: James Bloodworth (Left Foot Forward), Jeremy Browne MP, Liam Fox MP, Jonathan Isaby (TPA), Mark Littlewood (IEA), and a UKIP spokesman to be confirmed. To RSVP please email email@example.com
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