Friday, 30 October 2009


TaxPayers' Alliance bulletin - 30th October 2009
 
You've been quango'd
 
This week the TPA produced our annual list of Semi Autonomous Public Bodies (or Quangos, in common parlance) and it may not come as a surprise to those of you watching the growth of the unseen government of the UK that this list is a long one, and is costing taxpayers more than ever. The report found that in 2007-08 there were 1,148 Semi-Autonomous Public Bodies (SAPBs) operating in the UK. The amount spent on or through these SAPBs was over £90 billion in 2007-08, an increase of £13 billion from the £77.2 billion spent by those same bodies in 2006-07 and equivalent to around £3,640 per household. The quango state is now employing over 733,000 staff and the largest employer was Royal Mail, with 199,018.  
 
The report also calls for urgent reform and lists some of the common problems that arise from such a large, expensive and pervasive quango state, such as a lack of accountability, cost, cronyism, duplication of function and taxpayer-funded lobbying. The report includes a list of bodies that the TPA recommends should have their government funding cut. There is also a department-by-department breakdown of quango spending, as well as details of every SAPB operating in Britain today. Read the full report here

Our report received great media coverage, with hits including:
Times Educational Supplement: Is FE counting the cost of a quango crisis?
Daily Telegraph: Quangos cost each household £3,600 a year
Daily Express: £90BN BILL TO RUN UK QUANGOS
Daily Mail: Report warns how the rise of the quango 'costs each family £3,640 a year'    
Daily Star: BUREAUCRATS SPEND £90BN OF OUR CASH
Daily Telegraph: City Diary: Quango offering Jobcentre for boys
Scotsman: Cost of quango state attacked
The Spectator: Coffee House: The quangocracy laid bare
Conservative Home: Alphabet Soup Government
Douglas Carswell MP: The plan to deal with the quangos
Burning Our Money: Whacking The Middle Class
TPA spokesmen also appeared on the BBC Politics Show, BBC Radio Cornwall, BBC Radio Humberside and Colourful Radio to discuss the size and cost of our quangostate. Our report and figures were also mentioned by Caroline Spelman in a House of Commons debate, read the citation here.

Emissions Trading Scheme costs us £3 billion a year

A new report from the TaxPayers' Alliance (TPA) reveals the high costs being imposed on British and European consumers by the European Union Emissions Trading Scheme (ETS). The ETS is intended to reduce carbon emissions across Europe by increasing the cost of energy for households, businesses and other organisations. This increases household bills, but also increases business running costs and the cost of running public services such as hospitals.
 
As well as calculating the cost of the scheme, the report investigates the flaws in its design and function. These include the problem of the burden falling disproportionately upon the poor, the highly volatile price of carbon emissions under the Scheme and the failure of the Scheme to properly balance the social costs of carbon emissions with the cost of reducing them. The Emission Trading Scheme cost British consumers nearly £3 billion in 2008, equivalent to around £117 per family, by increasing the cost of energy. The report also presents estimates of the cost to consumers in every country participating in the scheme, in each year of the scheme’s operation. From its introduction on 1st January 2005 to the end of 2008, our central estimate of the Scheme's cost to consumers across Europe is £67 billion (€93 billion). That is equivalent to around €185 (£132) for every person in the ETS participating countries. Some countries' energy markets pass on these costs to consumers at different rates, meaning that at best the Scheme cost around £33 billion (€46 billion) and at worst £83 billion (€116 billion). Read the full report here. 
 
MPs' expenses: the final countdown
 
This week has seen the resurgence of the MPs' expenses debate, with key findings of the Kelly Inquiry being leaked ahead of its full publication next week. Among the recommendations we've seen so far, there is a ban on MPs employing their family members, and an end to MPs claiming mortgage interest on their expenses. These steps are encouraging, and we hope to see more of the same next week. TPA spokesmen have been taking to the airwaves to discuss the leaks, with hits including BBC Newsnight, where Political Director Susie Squire argued that the practice of MPs employing their family members should be brought to an end, as unfortunately there has been such abuse of the system that taxpayers now regard the practice with great suspicion, and that the Kelly Review presents a golden opportunity to clean up Parliament. Watch the discussion here.
 
Taxpayer-funded lobbying: the face off

Back in August, we released Taxpayer funded lobbying and political campaigning.  That report set out how over £37 million was spent on taxpayer funded politics in 2007-08, nearly as much as all three major political parties combined spent through their central campaigns at the 2005 election, and the actual total could be much higher. After that report, the Public Relations Consultants Association e-mailed us challenging the TPA to a debate on this issue.   Needless to say, we immediately accepted.  The English Speaking Union have agreed to host the debate at Dartmouth House.  Francis Ingham – Director-General of the PRCA – and another speaker yet to be confirmed are going to propose the motion“This House believes it can be legitimate for public sector bodies to use taxpayers' money to hire public affairs and public relations agencies.” 

Matthew Sinclair, TPA Research Director and author of the report, and Alex Deane, Director of the new Big Brother Watch campaign will be the opposition.  The debate has already been covered in PR industry magazines, with the Conservatives looking at banning public sector bodies from spending on PR consultants they know that their industry’s days of living high on the hog with our money might be coming to an end. We would like to invite you to what should be an exciting and important debate.  The event will start at 6.00pm on Monday November 16th at Dartmouth House with the debate itself beginning at 6.30pm.  If you want to come along e-mail Jason_vit@esu.org to request a free place.  You can see the location of Dartmouth House here.

The Future of England

The Campaign for an English Parliament have asked us to publicise the event below, which you might find of interest:

It is now ten years since the 1998 devolution legislation which provided Scotland and Wales with constitutional recognition of their distinct nationhood within the Union and with self-rule with the establishment of the Scottish Parliament and the Welsh Assembly. Both countries have forged ahead re-creating and expanding their own distinct national identities and obtaining immense benefits and advantages. Whereas England did not have any powers devolved to it. This topic will be debated in Room 10 at the House of Commons on Wednesday November 18th from 5pm - 7pm. Speakers include George Monbiot (Guardian newspaper and environment campaigner), Peter Facey (Director: Unlock Democracy), Paul Kingsnorth (author of ‘Real England: The Battle against the Bland’) and David Wildgoose (vice-chairman The Campaign for an English Parliament). If you wish to attend, please let the Chairman of the meeting know, Mrs Scilla Cullen, know asap on 01438 833155 and scilla.cullen@dsl.pipex.com
 
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