TaxPayers' Alliance Bulletin - 5th March 2010
Council pension deficits
Earlier this week we released new research showing massive and rising deficits in local government pensions. The £53 billion black hole in council pensions received widespread coverage in print and broadcast media.
Detailed investigation of local government accounts revealed that total council pension deficits are more than £53 billion – up from around £42 billion in 2007-08. Fifteen authorities have deficits of more than £500m. Read the report to find out more.
John O'Connell, Policy Analyst at the TaxPayers' Alliance said:
"These deficits are a huge ticking time-bomb. Investment portfolios will have taken a beating in the credit crunch, but that is only part of the problem. No matter how good the markets get, the inescapable fact is that local authorities are running unsustainable final salary schemes that are now all but extinct in the private sector. Swift and firm reforms are essential to stop this deficit escalating further out of control in the long-term, and lighten the load on council budgets in the short-term. Local taxpayers already pay a fortune for these pensions, and it would be grossly unfair for local authorities to try and plug this gap with yet more tax rises.”
Telegraph, Council pensions shortfall tops £53bn
Daily Express, £53bn Black Hole in council pensions and you pay for it
Oxford Mail, Council pension funds shortfall hits £784m
Wales Online, Welsh councils hit £4bn pension black hole
The News (Portsmouth), Shortfalls in council pensions a 'time bomb'
Express and Star, £2.8bn shortfall in council pensions
The Northern Echo, Pensions Deficit of £3.5bn revealed
The story was also featured on a variety of local and regional television and radio stations, including interviews with Mark Wallace and John O'Connell of the TPA.
A few of you had a sneak-peek at the report before it was officially released. We would like to thank all those who kept it under their hats; that really helped us launch the report to the media and get the message out.
The Misery Index
TPA Research Director Matt Sinclair this week produced new estimates for an economic statistic that first rose to prominence in the stagflation of the 1970s – the Misery Index. No it’s not the US deathgrind band formed in 2001, it’s an indicator which provides a useful insight into the economic pressure facing ordinary families. If you missed his blog post you can read it here.
Despite lower structural unemployment in our relatively flexible labour market, high inflation means that Britain now scores worse than the eurozone. That is evidence that Britain is having a weak recovery and we need to take action on spending to restore confidence and get families and businesses spending and investing again.
Chip and bin
The Big Brother Watch campaign have released new research about the number of councils who have installed microchips in their bins. 68 authorities have installed the systems, up from 42 just last March. There is a real danger that councils are preparing the way for yet another tax, on top of the doubling of council tax, that would hit hard working families. We need to be prepared and fight any new bin taxes. Read the report on their website to find out more.
Update from the West Midlands
Over in the West Midlands Fiona Mc Evoy’s been keeping an eye on one of the most controversial art galleries in the country. Read what she’s found out about the public gallery in West Bromwich.
Best of the Blogs
Better Government: Roadwork Overruns
Burning Our Money: Non-Job of the Week
Economics 101: The Carbon Trust try to make a unilateral carbon price work
Better Government: The ease of establishing quangos
Campaign: £1 billion for Broadband Quango
Economics 101: Britain fared worse than the eurozone in 2009
Burning Our Money: Ts and Cs
Economics 101: The Keynesian excuse for not cutting spending
European Union: Staffing unlimited
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