TaxPayers’ Alliance calls for urgent and radical action from the Chancellor to attack the deficit

November 26, 2014 12:00 PM

George Osborne will this week deliver the final Autumn Statement of this Parliament. He should use the opportunity to declare a real War on Waste, going further and faster inreal deficit reduction rather than political grandstanding. He should also help secure the recovery by speeding up threshold changes to the personal allowance and 40 per cent rate, and restore honesty to the tax system by renaming National Insurance as the Earnings Tax.

In detail, the TaxPayers’ Alliance recommends:

Waste
  • 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
  • Re-start the process of assessing the role of every single public body and abolish those that are no longer required
  • An end to the NHS ring-fence so that wasteful practices can be eliminated, allowing Simon Stevens, the boss of NHS England, to enact the changes he has identified that could save £22 billion of taxpayers' money. The Chancellor must challenge the NHS to find savings and prioritise frontline services, not provide a financial sticking plaster
  • Scrap the HS2 white elephant and use some of the money saved for better value rail and road projects.
  • 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 museums, universities and training to other departments
Taxes
  • 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 the Government
  • 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
  • Reform Stamp Duty, either by eliminating the slab rate system, reducing the rates by 50 per cent, or doubling the thresholds at which the different rates apply
Speaking in advance of the Autumn Statement, Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance said:

“The deficit is still enormous and with the credit card bill getting ever larger, it's time for urgent and radical action to cut both down to size. That means the Chancellor should wage a war on wasteful spending and cut out unnecessary quangos and departments to trim down the size of government. That will leave room to make the tax cuts hard-pressed families so badly need.”
 
Together with the Institute of Economic Affairs, we will be hosting a post-Autumn Statement briefing on the morning of the 4th December in Westminster. Further details can be found in the Notes to Editors below. Contact Andy Silvester for any further information.
TPA spokesmen are available for live and pre-recorded broadcast interviews via 07795 084 113 (no texts)
Media contacts
Andy Silvester
Campaign Manager, TaxPayers' Alliance
andy.silvester@taxpayersalliance.com
24-hour media hotline: 07795 084 113 (No texts)

Notes to editors

1. Founded in 2004 by Matthew Elliott and now with 80,000 supporters, the TaxPayers’ Alliance (TPA) fights to reform taxes, cut spending and protect taxpayers. Find out more about the TaxPayers' Alliance at www.taxpayersalliance.com 

2. Our Post-Budget Briefing will be held on Thursday 20 March 2014, 9.15am for 9.30am at The Institute of Economic Affairs, 2 Lord North Street, London SW1P 3LB. Speakers include: Jeremy Browne MP, David Davis MP, Simon Danczuk MP, Jonathan Isaby (TPA), Mark Littlewood (IEA), Steven Woolfe MEP. To RSVP please email slis@iea.org.uk

Latest Blogs:

TaxPayers' Alliance Icon

Aid spending needs to be more transparent

4:55 PM 08, Dec 2016 Harry Fairhead

TaxPayers' Alliance Icon

The sugar tax and the public finances

6:00 AM 05, Dec 2016 Harry Fairhead

TaxPayers' Alliance Icon

Working for the taxman

6:00 AM 26, Nov 2016 Harry Fairhead

TaxPayers' Alliance Icon

Further thoughts on the Autumn Statement

4:56 PM 24, Nov 2016 James Price