May 2008 12

The Great British TaxPayer Rip-off6

Rising taxes, soaring charges, service cuts. It’s…

THE GREAT BRITISH TAXPAYER RIP-OFF

Download the full report (PDF)

In a new report, the TaxPayers’ Alliance outlines the way that over the last decade British taxpayers have faced a huge increase in their tax bills, but at the same time, they’ve been made to pay additional fees and charges for what used to be “free” public services. To cap it all, service levels have suffered widespread cuts. Faced by a rising cost of living, these taxes and charges are adding a sizeable burden to ordinary households.

It all adds up to the Great British Taxpayer Rip-Off.

Key Findings:

Rising taxes

  • The tax bill has soared, increasing over 50% in ten years even taking inflation into account. Through vast increases in a range of up-front taxes, stealth taxes and cunning measures such as fiscal drag, the average household tax bill has grown to £20,700.
  • The total Stamp Duty collected has increased a staggering 314% in the last ten years. Together, the nine fastest growing taxes, which are detailed in the report, make up three quarters of tax revenue.
  • Fiscal drag, by which the Government catches millions of people in higher tax bands by raising thresholds slower than inflation, has raised £80 billion in the last ten years, including £14 billion in the last year alone.

Higher Charges

  • The total cost of NHS, local authority and quango charges is now over £17 billion per annum, nearly £700 per household.
  • Full details of the range of charges are given in the report, but some examples include: school dinners charges have risen 50% in ten years to £1 billion per annum; parking charges and fines have risen to over £1 billion; Hospital car parks raise over £100m in England alone.

The full report provides the most comprehensive analysis of the rise in taxes, stealth taxes and charges that has ever been compiled, illustrating the burden borne by ordinary families across the country. A PDF of the report is attached to this email.

Mike Denham, the former Treasury Economist who authored the report, said:

“The Government has used every trick in the book to drive up the tax burden, and ordinary families are paying a heavy price. People are increasingly beset by record levels of taxation and growing service charges, but there has been no improvement in services in return. We find ourselves paying more and more for less and less. With rocky economic times ahead, this rate of taxation simply cannot be sustained.”

Matthew Elliott, Chief Executive of the TaxPayers’ Alliance, said:

“The British public are being ripped off in the most shameful way. The cloak and dagger methods the Government is using the squeeze money out of hard working people are deplorable. We are sick and tired of being exploited and let down. With fewer police stations, limited GPs’ hours, libraries closing, rarer bin collections and a host of other cuts we are getting less for our money than ever before. People are facing higher fuel bills, more expensive food and much bigger mortgage bills – and on top of all that they are being stealth  taxed and charged more than ever before. This con has got to stop.”

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  • a-tracy

    don’t forget plus private dental insurance or charges as ? (half I’d guess)of us had dentists that privatised in the last couple of years.

  • Paula

    Here’s another rip off – my Mother is trying to sell her bungalow. Because of her age and health worries we moved her closer to us so that I can get to her quicker should the need arise. We are paying the mortgage on her new property until the old one sells. We did all of this before it came to light that the government had achieved it’s objective of totally destroying the economy and the banks stopped lending for mortgages. The old bungalow has been on the market for seven months now and the council are demanding FULL council tax. My Mother is 72 years old, on a state pension. She is paying for the council services from her new address – the services that she can only use once – such as they are.
    The government have stated that “The Government wishes to encourage re-occupation of long-term empty properties” – at a time like this! My MP managed to get a compromise whereby they would delay payment until the property sells but the obnoxious creeps say she has to get a solicitor to write a letter stating that she will. They’re basically saying that her word isn’t good enough! So now it’s legal for the councils to steal from 72 year old widows so that they can rake in more money to waste on crap! If I charged someone for a service that they were not receiving I’d be breaking the law – how does it not work that way with the thieving councils!? £1200 to pay for nothing and they expect a 72 year old widow to pay it. It’s just disgusting the lengths they will go to to extract more and more money, they will stop at nothing.

  • Dr Andrew Johnston

    This is a selective presentation of the data – and you know it. Let’s look at income tax – this has gone up by 96% in the decade 1997/98-2007/08 but you neglect to highlight how far incomes have risen. Yes, income tax receipts may have risen but so have incomes – and remember the tax system is based on PAYE. So as our incomes increase so will our tax bill – but you need to highlight the proportion of income paid in tax to say anything meaningful.
    Stamp duty receipts are higher as the price of houses have rocketed, making the average house purchase now involve a payment of stamp duty. How is that the fault of the Government? It’s the same effect as if we all suddenly started buying any product – VAT receipts would go through the roof.
    There are 2 questions that need answering: What are the opportunity costs of the present tax system? How can we tackle the democratic deficit that sees a huge chasm between the tax payer and those who decide how to spend tax receipts?

  • Jim

    “Stamp duty receipts are higher as the price of houses have rocketed, making the average house purchase now involve a payment of stamp duty. How is that the fault of the Government?”
    Because, Dr Johnston, the Government have failed to increase the thresholds to keep pace with house price increases. It’s called fiscal drag, and is a stealthy way of increasing taxes. In fact, it says that in the report – have you read it?

  • Stephen Thomson

    One of the biggest problems is the welfare state and the burden it places on the finances of Britain PLC.
    How is it that scroungers believe it is better to live off state handouts than work to put into collective society. This is storing up a massive collective problem for Britain in that these “people” determine it is their god given right for the economically active to work hard to pay tax, so that the soft touch British government can give them money for nothing.
    The fact that in Britain these scroungers are rewarded to have numerous children to get more money; benefits etc is outrageous and extremely dangerous. Ask yourself this – when these scrounging families are into their 3rd and 4th etc generations where the norm is not to work and contribute and when British society is overflowing with economically inactive scrounging generations – where is the money going to come from?
    It is a simple equation – the economically active family units, who will likely produce the vast majority of the economically active adults of future generations will be outnumbered by the scroungers with their multiple offspring, and when more is being taken out of the public purse than is being put in then you will get a situation where Britain will go bust and end in chaos – how will the scroungers get money if there is none in the system?
    You have to consider the upbringing the children of these scrounger families have:
    1 Lack of an appropriate adult role model to give the child a positive upbringing to teach them the values that that are needed to positively contribute to a modern fair society
    2 Likelihood of these kids ending up in the criminal circles is higher
    3 Belief that society owes them free money
    4 A skewed view of what is right and wrong -Less concern with the laws and rules of the land
    If you have never contributed into society, then you should never be able to take from society.
    Welfare should exist to help the real needy who have fallen on hard times – it cannot be a long term pemanent solution and benefits should be removed after a ceiling period is reached – the governments needs to address this before it is too late.
    WELCOME TO RIDICULOUS BRITAIN – THE SOFT TOUCH

  • fred rice

    The US has had this same problem for years. The politicians finally came up with a weak program called “workfare” vs welfare.
    Same things go on….the “scroungers” are baby factories to get $$$ from the Govt. No education, turning to criminal activity for additional income.
    Disregard our laws and claim minority foul when caught and punished. Then our legal system goes lenient on them.
    It is the same over and over. The citizens of our countries must band together and take back control. Politicians are only interested in their own wealth building at taxpayer expense. No watchdog groups to control what they do and you will soon loose all your rights.
    These are sad times.