Everyone knows that the public finances are in a mess. Unfortunately, it looks like the Government still aren’t facing up to the scale of the crisis. At the time of the Budget, many senior economists criticised their forecasts for being decidedly optimistic. Now new research by the Centre for Economics and Business Research for the TaxPayers’ Alliance shows what could happen if things don’t work out that well: £2.1-£2.3 trillion in debt by 2017/18 and 3.2-3.8 million unemployed by 2011.
At the same time, the research shows that big tax hikes would have disastrous results for the economy. The 50p tax rate alone will reduce economic growth by 0.4 per cent of GDP, increase public borrowing by £1.8 billion a year and increase the base unemployment rate by 0.8 per cent by 2020/21. The answer has to be spending cuts. Politicians need to do more to set out plans that could seriously bring down spending. Even if the Treasury’s numbers are right the public finances are in a crisis, but if they’re wrong then they could be sleepwalking into another catastrophe. To read the full report, please click here.
Not Robin Hood, just robbing us blind 
There is rightly increasing political and popular concern about unemployment. In response, parties are putting in place or proposing new schemes to provide specific incentives for employers to take people off the unemployment register or take on new interns and apprentices. A new TPA report, Tax and Entrepreneurship, shows that these policies do little to encourage the new firms that create the vast majority of new jobs. It also shows that the new 50p tax rate will push the total top marginal tax rate on high earnings to 92% and argues that will mean fewer entrepreneurs and jobs.
Co-authored by TPA Research Director Matthew Sinclair and Dr. Jonathan M. Scott, Teaching Fellow at Queen's University Belfast, with an excellent forword by Julie Meyer online "Dragon" and Chief Executive of Ariadne Capital, Tax and Entrepreneurship demonstrates how the tax system affects the decision over whether to become an entrepreneur. To read the full report, please click here.
Daily Telegraph, New 50p tax rate 'will stifle the economy'
Daily Telegraph, Simon Heffer: David Cameron is likely to win, but don't expect a Conservative government: Tory silence on the 50p tax rate, Europe and private schools shows a party too timid to achieve anything in office
City Wire, Will the new 50p tax rate kill off entrepreneurship?
City AM, Julie Meyer: We are all slowly becoming individual capitalists
The Guardian, Matthew Sinclair: The 50p rate will kill entrepreneurship: A rise in tax that fails to create revenue but means fewer new businesses and fewer jobs must be abandoned
Belmont University, Tax Study from UK Argues Higher Marginal Rate will Cripple Entrepreneurship
ConservativeHome, Matthew Sinclair: The 50p rate will mean fewer entrepreneurs and fewer jobs
Guardian Comment is Free, The 50p rate will kill entrepreneurship
Spectator Coffee House, 50p tax rate will discourage entrepreneurship
The Devil's Kitchen, How to kill entrepeneurship
The Wilted Rose Blog, “The 50p rate will mean fewer entrepreneurs and fewer jobs” – Taxpayers’ Alliance
CNBC, Matthew Sinclair TPA Research Director and co-author of the entrepreneurship report discussed the report and the broader issue of how the public finances can be restored to health.
Independent Remuneration Panels - get involved!
Lincolnshire County Council is looking for new members of its Independent Remuneration Panel (IRPs). These panels are very important. They judge and recommend what pay, perks and expenses councillors get, so it’s a prime opportunity for you to have a say on the quality of service your councillors are providing. For details about how to apply, see our blog.
Raining on the EU’s parade
The EU Commission are giving away 5,000 free tree saplings in their click-a-tree scheme. The idea is that when you get your tree you plant it and send them a photo showing where you have put it, that they then put on their official site. We were thinking it would be great if TPA supporters requested a seedling here. Please note you will be giving your details to the EU. When you get your seedling and plant it, get us to send you a ‘stop the EU rip off’ postcard to photograph next to the plant and send it to the EU. Wouldn’t it be great if the EU’s own scheme was covered with photos telling them to stop the EU rip off! If you are taking part, please email us at tim.aker@taxpayersalliance.com. Also please send us your photos that we can use on our website and in our future literature.
Stop the EU Rip-Off stickers
Thank you to all who have requested our ‘stop the EU rip-off’ stickers. If you haven’t yet ordered one, or know friends or family who would want one, reply to this email with your name, address and postcode and we will send you a window sticker. We also have van stickers for our supporters who drive or own vans.
Stand and deliver
TPA supporter Phil Bunce is looking for help handing out some leaflets across Bournemouth. If you live in the Bournemouth area and would like to help with a TPA leaflet deliveries email us tim.aker@taxpayersalliance.com and we’ll put you in touch with Phil. On August 19th we’ll be in Hove handing out posters detailing MP Celia Barlow’s expense claims, letting local people know where their MP has spent their money. If you are in the Brighton/Hove area and would like to help out, email Tim Aker.
The TPA and Avanta – the company run by our supporter, David Alberto, who generously donated our new office space to us – invite you to a great charity event. The 3rd Sparks Race Day at Kempten Park on Monday, 21st September, is a great day out: fantastic racing, good food and like-minded company whilst taking pleasure knowing that you’re doing your bit to help Sparks achieve its goal for all babies to be born healthy and stay healthy. By supporting The Sparks Race Day you’ll be making sure 
that together we can make a real difference to the lives of sick babies and children. We hope you will consider supporting this very worthwhile charity.All inclusive packages are £149 per person for the stunning Panoramic Bar & Restaurant at Kempten Park. For more information on tickets, please contact Giles Fallan on: 01753 651177 or email giles@propertyevents.co.uk
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