Friday, 5 November 2010


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TaxPayers' Alliance Bulletin - 5th November 2010

The case for cuts is won, the case for lower taxes is just beginning

Since our launch in 2004 we’ve been waging war on two fronts: one fighting excessive Government spending and waste and one fighting for tax cuts. Our arguments for lower spending have made a huge impact, and as the full scale of the fiscal crisis has become apparent more and more of the TPA’s recommendations for spending cuts have been adopted by the Government. There is a now widespread acceptance of the need for cuts, and this wasmade clear at two events we spoke at recently. TPA Research Fellow, Mike Denham, and Director, Matt Sinclair, spoke at a Treasury Solicitor's Department event at the Chartered Institute of Management Accountants. Several dozen Civil Servants from across Whitehall gathered to watch them debate the motion "Cuts in Public Spending are Right and Necessary" against Tim Horton, the Research Director at the Fabian Society. At the end a vote was taken and – we’re delighted to say – the TPA’s motion carried by a wide margin.

Matt PPS EventAt another event, the Property Week ‘Public Property Summit’, the TPA had a similar debate with the Director of the Smith Institute, Paul Hackett and once again the TPA case for cuts was carried by a massive majority. It seems that people do generally accept the basic case that spending cuts are right and necessary. Of course there are bound to be disagreements on the detail, but most people are aware that the way to tackle the deficit is to stop spending so much taxpayers’ money. That means when unions and some politicians oppose every cut proposed they are in a tiny minority.

We shouldn’t forget that there are other areas of policy where things aren't going quite as well though. Measures like the 50p rate and Inheritance Tax are unfair and, according to many independent forecasters, could even reduce revenue from the rich, increasing the burden on ordinary taxpayers. Look out for a big new project from us in the New Year – the TPA is going to take on the long term case for tax reform and push for the kind of change we've seen with spending in other areas.

Submission to the Treasury Select Committee

The Treasury Select Committee has held a number of sessions this week to take evidence on the Spending Review. The Chancellor, George Osborne, and Chief Secretary to the Treasury, Danny Alexander, both appeared separately before the Committee, and gave their views on some aspects of how the Spending Review was conducted. The TPA was asked to submit written evidence to the Committee so that members could be briefed on our opinion of the Spending Review – you can read our submission in full here. Supporters may remember that we held a briefing for journalists on the morning after the Spending Review, for which we produced a briefing note,which you can read here. It's good to see that Parliamentary Committees are contacting the TPA to get our views on these issues – after all, we have been leading the fight for spending cuts for quite a while now, and are still working to ensure taxpayers get better value.

Unions

Union DinosaursStrikes are in the news again, and threaten to be increasingly frequent as government spending cuts hit.

Just this week transport workers caused chaos for commuters in London, while a planned strike on Bonfire Night by the Fire Brigades Union was only averted at the last minute. In March we did someresearch into public sector strikes and found that public sector workers strike for fifteen times as many days per worker as those in the private sector.

Over the past few weeks we've returned to the topic regularly and TPA Policy Analyst Jennifer Dunn has discussed why union funding needs to be cut, called on you to get your MP to vote against changes to the Minor Errors Bill which would have made it easier for trade unions to strike, and criticised the action almost taken by the FBU.

Let's not forget that the cuts being made are vital, and by trying to block these measures the unions are condemning the public to a future of high taxes, unsustainable spending and crippling debt.

Grassroots

TPA Cardiff LogoLast week, the latest branch in the TPA grassroots network opened for business. Lee Cannning, our coordinator in Cardiff, issued a press release on public liability claims against Cardiff City Council. Over the last four financial years, taxpayers had to foot a bill of £1.3 million because of defective pavements in the city. This story was picked up by the South Wales Echo, and was splashed on the front page! A big thank you goes to Lee for all his hard work, and he has more stories in the pipeline.

A big thank you also goes to supporters who contacted Andrew Allison with examples of waste in their area. A few supporters are getting more information for us, so we can have detailed figures to go public with. If you have a story to tell, contact Andrew (andrew.allison@taxpayersalliance.com) and if you would like a Freedom of Information Request template, let him know. This is the best way of getting accurate information, and it's not complicated. Anything you can do to help is greatly appreciated.

Best of the Blogs

Economics 101: Entrepreneurs in exile? - John O'Connell says the same tax rates that caused to Rolling Stones to leave England are also hindering entrepreneurs

Better Government: Audit Commission failed to audit their own spending - Chris Daniel reckons the Audit Commission should have done a better job auditing its own accounts

Grassroots: Silent Danger - Tim Newark questions Bath's transport policy in light of a spate of accidents involving cyclists

Campaign: The Tube Strike affects all Londoners, right? - Josh Mead on how MPs continue to insulate themselves from the frustrations and anxieties of taxpayers

Campaign: Who is the biggest loser? - Emma Boon on the worryingly high number of laptops and mobile phones that 'disappear' from the Ministry of Justice

Burning our Money: Message From Margaret - Mike Denham argues that in order to make serious efficiency savings, we need radical reform in the way our public services are delivered

Better Government: List of RDA-owned properties - John O'Connell on RDA-owned chip shops and pubs

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