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Click here to read the full report including a full breakdown of local Police Authorities

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The TaxPayers’ Alliance today reveals that, on average, 9 per cent of each Police Authority’s budget is spent on the Chief Executive’s salary and pension – including an average salary of £90,000 – and members’ allowances cost over £10 million in 2009/10.

Click here to read the full report including a full breakdown of local Police Authorities

The Government plans to replace the current Police Authority structure with local elected Commissioners. They would set targets for forces and control their own budgets. Some have claimed that this change will be expensive but it is important to look at the context and the fact that there are already significant costs with the current arrangements.

The key findings of this research are:

In 2009-10, the total bill for members’ allowances was over £10 million, with an average payment to members of £14,100
In 2009-10, the average salary for a Police Authority Chief Executive was £90,000;with pension payments, this increases to nearly £103,000
Police Authority budgets averaged £1.7 million in 2009-10
On average, 9 per cent of an Authority’s budget was spent on the salary and
pension of the Chief Executive
The average number of staff at a Police Authority was 13 in 2009-10
Police Authorities paid £1.3 million in subscriptions to the Association of Police Authorities in 2009

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

“Police Authority Chief Executives enjoy generous pay and perks at taxpayers’ expense. But despite the cost, Police Authorities aren’t properly accountable to the public who pay for them. The introduction of elected police commissioners will ensure that the police are taken to task by elected representatives, and have to respond to the public’s priorities, which doesn’t always happen under the current system. There will be a cost but that is far better than sticking with the status quo. “

New Research: High costs of unaccountable police authorities revealed

Dec 16th, 2011

Click here to read the full report including a full breakdown of local Police Authorities

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Click here to read the full report including a full breakdown of local Police Authorities

The key findings of this research are:

In 2009-10, the total bill for members’ allowances was over £10 million, with an average payment to members of £14,100
In 2009-10, the average salary for a Police Authority Chief Executive was £90,000;with pension payments, this increases to nearly £103,000
Police Authority budgets averaged £1.7 million in 2009-10
On average, 9 per cent of an Authority’s budget was spent on the salary and
pension of the Chief Executive
The average number of staff at a Police Authority was 13 in 2009-10
Police Authorities paid £1.3 million in subscriptions to the Association of Police Authorities in 2009

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

New Research: TPA estimates 7,852 council staff suspended for 2,500 working years

Dec 14th, 2011

Click here to read the full report, including a breakdown by council

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The TaxPayers’ Alliance estimates that around 7,852 council staff could have been suspended for a total of 2,500 working years since 2009. The is a projection based on a sample of 78 authorities in the Midlands which were asked how much had been spent paying the salaries of employees suspended on full pay as well as detailing the reasons they were ordered off work.

Click here for the full press release

The key findings of this research are:

Of the 78 councils across the Midlands, 69 responded and of these: 57 paid suspended employees around £8 million since April 2009. Six councils refused to provide any information, twelve did not provide salary details, one did not respond to our request and two did not record requested details of any suspended staff.
Since April 2009, there have been 1,328 members of staff suspended on full pay across the Midlands, totalling more than 100,000 days. The average suspension lasted 76 working days.
If these figures were replicated nationally in line with the spending power of Councils in the Midlands, we estimate that since April 2009 7,852 staff would have been suspended for a total of 594,816 days, or almost 2,500 working years.
In 876 cases the outcome was disclosed. Of these 47 per cent left the organisation, 45 per cent were retained and 8 per cent of cases are on-going.
Leicester City Council paid out the most in salaries to suspended staff at almost £1.5 million for a total of 107 incidents. This is the equivalent to 16,000 working days.
Nottinghamshire Council had 167 cases of suspension since April 2009, the highestin the Midlands, but refused to provide any further information.
78 employees across the Midlands were suspended on full pay for more than 12 months (based on a 240 working day year).
A manager on over £67,000 a year at Newark and Sherwood Council was suspended for 77 days before leaving the authority.
An employee of Leicester City Council on a salary of £48,642 was suspended for 872 days. The total wages paid during suspension was in excess of £176,000. This was the largest amount paid during suspension.
An employee at Lincolnshire Council on a salary of almost £65,000 a year received over £92,505 during a suspension of 523 days, before being dismissed. An employee of Nottingham City Council was suspended for 950 days – almost four years. However, no cost was provided.
At least 21 cases across the Midlands resulted in criminal charges. Of these, 18 members of staff did not continue in their employment, and were paid over£170,000 while suspended.
Of the 1,328 recorded cases of suspension, two were for sleeping whilst on duty and two for having other employment whilst on sick leave from the council. A further 15 cases were for theft including theft from service users and one incident of theft from the council and misuse of a council vehicle.
There were nine recorded cases of sexual misconduct, assault and/or harassment. There were an additional 13 cases of assault and two involving violence. There was also one alleged kidnap.

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

“Taxpayers will be shocked that so many employees were paid for months on end whilst suspended and waiting for a decision about their future. This isn’t good for taxpayers, the council or the individual involved. Local authorities must ensure that action is taken and suspensions are dealt with swiftly and cases don’t drag on, leaving taxpayers picking up the bill for staff who are off work for long periods and temps to cover their absence.”

Click here to read the full report, including a breakdown by council

Click here for the full press release

TPA reaction to Government proposals on the recall of MPs

Dec 13th, 2011

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Responding to the Goverment’s Recall of MPs Draft Bill, Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

“The public were promised that they would be given the power to kick out bad MPs but now we find out that isn’t really happening. So long as they have enough friends in Parliament, and avoid doing anything so flagrant it actually gets them sent to prison, they will be safe from these toothless provisions for a recall. Outside of elections every four or five years MPs are still going to answer only to themselves, or the police in the most extreme cases, and not to their constituents. Many voters will feel let down as the Government buries serious reforms that were promised after the expenses scandal.”

TPA reaction to Government proposals on the recall of MPs

Dec 13th, 2011

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Responding to the Goverment’s Recall of MPs Draft Bill, Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

TaxPayers’ Alliance sets out powers the PM should bring home from European Council

Dec 6th, 2011

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The TaxPayers’ Alliance (TPA) today (Tuesday December 6th) sets out how David Cameron has, for the first time in a generation, a serious opportunity to renegotiate Britain’s relationship with the EU and seek the repatriation of powers back to the UK.

Setting out a list of twenty policy changes that could make up any new deal between the UK and the EU, the TPA says the British Government could take immediate action on six of these areas without the need for any agreement in Brussels. The remaining fourteenwill require negotiation at the European Council on December 9th.

The twenty pieces of the policy jigsaw cannot be tackled in isolation. Britain is in a strong negotiating position and should force these issues onto the agenda.

Any package of reforms brought home from the European Council should be judged in comparison to this list; otherwise the Government could declare victory while delivering a poorer deal for taxpayers.

Fourteen pieces of this jigsaw should be on the negotiating table at the European Council:

Bringing to an end the treaty objective of “ever closer union”
Repatriating the Common Agriculture Policy to national government control
Repatriating the Common Fisheries Policy
Repatriating control over International Development
Radical cuts to budgets where policies have limited demonstrable benefit
Slashing the UK budgetary share
Re-establishing the Social Chapter opt-out
Ensuring UK Parliamentary sovereignty overrides EU law
Dropping UK participation in EU defence integration
Introducing flexibility involving Justice and Home Affairs, including Asylum and Immigration control
Restoration of UK Government powers over taxation
Greater freedom for Britain to enter bilateral trading agreements globally
Rowing back from costly EU space ambitions, particularly the Galileo programme
Triggering massive reform to the structures of the EU itself

There are also six areas where immediate action can be taken by the British Government and without the need for any agreement in Brussels:

Commissioning a measured, independent and trustworthy cost-benefit analysis of EU membership
Demonstrating an intent and capability to act unilaterally if necessary to improve Britain’s position
Appointing a Cabinet Minister to review the acquis communautaire
Requiring EU-sourced legislation to be printed on differently-coloured paper, and to carry a cost-benefit summary that can be compared with the EU original estimate, in order to avoid ‘gold-plating’ (extra red tape from British civil servants)
Securing transparency in Westminster over EU laws
Improved use of the national scrutiny reserve, the Parliamentary veto

This list should be considered a toolbox for the British negotiating team and should help inform the backbench business debate to be held in Parliament on Thursday 8th December. Senior Conservative Ministers have long argued for a repatriation of powers; now that they have the chance, they must exploit this opportunity to make changes in the long term interests of Britain.

Tinkering with individual treaties is not enough. In the history of negotiation with the EU Britain has experienced a number of false dawns where despite winning a concession or opt-out from legislation, the policy has been enacted via the back door (such as the Working Time directive). There is no reason why Britain cannot fundamentally renegotiate its position; various nations already have differing relationships with the EU.

Dr Lee Rotherham, Research Fellow of the TaxPayers’ Alliance, said:

“The British people are crying out for the Government to stand up to Brussels and reclaim powers that should never have been surrendered in the first place. Senior ministers who have long called for a repatriation of powers now have a once in a lifetime opportunity to negotiate with their European counterparts from a position of strength. This report sets out a comprehensive list of reasonable demands that David Cameron should take into the negotiating chamber alongside a number of steps that can be implemented immediately at home, without recourse to Brussels. The Prime Minister has an opportunity to bring home a wonderful early Christmas present for British taxpayers, it is against these benchmarks that his ability to deliver for Britain will be judged.”

TaxPayers’ Alliance information on public sector strikes, pensions and unions

Nov 30th, 2011

Click here to use the online calculator

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Below is some background information on public sector pay and union pension myths, as well as an assortment of recently published work that you may find of use.

The TaxPayers’ Alliance is today also releasing a new online calculator that allows someone in the private sector to assess how their total remuneration per hour is comparable to that enjoyed by public sector workers on significantly lower salaries.

Public sector pay background

Public sector workers are significantly better paid than those in the private sector. Research at the Office for National Statistics concluded in July that “after accounting for: gender, age, occupation, the region that the job is located in, and factoring in qualifications, the public sector, on average, earned 7.8 per cent more per hour (excluding overtime) than the private sector in 2010”.

Public sector pensions

The unions are propagating two key myths about public sector pensions:

1. They claim that Chart 1B in the Hutton Report shows public sector pensions are affordable. But that chart is based upon pension accruals and pensions-in-payment growing with CPI, rather than RPI, which is one of the measures the unions are striking against. They cannot have it both ways. The projections shown in that chart are also the result of assumptions about public sector workforce and economic growth that may prove optimistic.

2. They claim that the “mean average public sector pension is £7,000” and “the majority” receive less. But that average will include a large number of workers who were only in a given public sector job for a short period of time, and have therefore only accrued a small public sector pension. With a 30-year career in the public sector, workers can expect generous pension provision:

A local government manager who retires on £60,000 a year could expect a pension of £30,000 a year
A more junior worker who retires on £25,000 a year could expect a pension of £12,500 a year
A worker in the NHS who retires on £40,000 a year could expect a pension of £15,000 a year and a lump sum of £45,000
A teacher who retires on £50,000 can expect a pension of £25,000 a year

Recently published TaxPayers’ Alliance research

Public Sector Pension Gap (Nov 2011) – Research showing how, excluding the NHS, there are already more public sector workers drawing a pension than there are working and paying in to the system.

Taxpayer Funding of Trade Unions (Nov 2011) – How the taxpayer subsidises trade unions to the tune of at least £113 million each year through direct grants and “facility time”.

Trade Union Rich List 2011 (Sept 2011) – The comprehensive annual run-down of the now 38 trade union bosses who took remuneration packages worth more than £100,000 in 2010-11.

Reacting to the strikes, Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

“It is incredibly unfair that taxpayers already struggling with the bill for the higher pay and better pensions enjoyed by public sector workers are now facing the disruption of a massive strike. Even after the proposed reforms, staff in the public sector will still get a great deal. The unions need to be more realistic and stop expecting everyone else to pay so much for public sector pensions.”

TaxPayers’ Alliance reaction to Autumn Financial Statement

Nov 29th, 2011

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

“There is some good news for taxpayers in the Autumn Statement, but over time the Government still needs to do more to deliver lower and simpler taxes. If tax remains the heavy and uncomfortable burden it is today, growth will stay disappointing. Motorists will be grateful for a better deal as they have been overtaxed for years, although they will need to remain vigilant with a big hike still scheduled for next August. And it is right that the Government keeps pay for public sector workers under control, as they currently get a much more generous deal than those in the private sector. The Autumn Statement was a reasonable start in reacting to the huge challenges facing the British economy, but a more ambitious plan for growth will be needed by the Budget.”

VIDEO: TPA/IEA Autumn Briefing

Nov 29th, 2011

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New TPA research reveals that there are more former civil servants drawing a pension than paying in

Nov 28th, 2011

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- Excluding the NHS, there are more public sector workers drawing a pension than there are working and paying in
- Public sector pensions are unsustainable. Trade Unionists should go for reform, not strikes

The TaxPayers’ Alliance has today revealed that the number of retirees across the public sector is fast catching up with the number of active members in unfunded public sector pension schemes. Excluding the NHS, there are more public sector workers drawing a pension than there are working and paying in.

With the high number of deferred members – those no longer paying in and owed a pension but who haven’t started drawing it yet – this problem is set to get far worse fast.

On Wednesday (30 November) public sector workers will take part in one of the biggest strikes ever seen in the UK. The walk-out is over pension reform, with unions unwilling to accept changes like increased employee contributions. But failure to reform public sector pensions would be unfair on taxpayers. We have an ageing population and final salary schemes mean taxpayers are funding more expensive deals for much longer. It may even be possible for some public sector retirees to draw a pension for longer than they paid into it.

The key findings of this report are:

The Civil Service pension scheme has more people drawing a pension than it has active members.

Excluding the NHS pension scheme, there are more people drawing an unfunded public sector pension than there are active members.

For every five active members of unfunded public sector pension schemes, there are four people drawing their pension.

Already, ‘pensions in payment’ for unfunded public sector schemes (£25.9 billion) are considerably more than employee and employer (taxpayer) contributions combined (£21.4 billion). When the number of retirees outstrips active members, this gap will increase still further. Since 2006-07, the gap has increased from £1 billion to £4.5 billion – without reform, it will get bigger.

There are over 1.7 million deferred members of unfunded public sector pension schemes. As more of these members begin drawing their pension, the gap between those drawing their pensions and active members will close more quickly.

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

“Public sector pensions in their current form are unfair on taxpayers. Pay-outs for unfunded schemes have increased and are projected to go up even more over the coming years, meaning expensive problems now and huge liabilities for the near future. It won’t be long before the number of retirees outstrips the number of active members and this will be extremely tough on ordinary families who are struggling to save for their own retirement, let alone pay higher taxes for pension schemes they could never afford. The Government must face down the unions and push ahead with pension reforms, so taxpayers are not forced to guarantee unaffordable and overly-generous final salary deals.”

Taxpayers fund trade unions to the tune of £113 million a year

Nov 25th, 2011

Click here for the full report, including a breakdown of local councils, fire authorities, NHS PCTs and trusts and more

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- Taxpayer funding of trade unions has increased from last year
- The value of direct grants to trade unions is higher than that shown last year
- The Government says that even a reduction in levels of paid for trade union time to private sector levels would save millions each year

In one of the most extensive Freedom of Information campaigns ever carried out, the TaxPayers’ Alliance has calculated the value of the direct grants and paid time off that trade unions receive and found that it has increased significantly from last year to £113 million. There are now at least the equivalent of 2,840 full time staff working on trade union activities or duties at taxpayers’ expense, an increase of 32 from last year (only counting organisations which provided data for both years).

On Wednesday 30 November public sector trade unions will conduct one of the largest and most widespread strikes ever seen in the UK. Our findings reveal they do so with even more taxpayers’ money than last year. Earlier this year Cabinet Office Minister Francis Maude MP and local government Minister Bob Neill MP acknowledged public and parliamentary concern about paid time off for trade union activities and duties.

If the number of public sector staff working for trade unions were reduced to levels seen in the private sector (where facility time is 0.04 per cent of the annual bill), then 2,028 full-time equivalent staff could return to frontline services, equivalent to saving taxpayers £57.2 million.

Key findings:

Trade Unions received £113 million of funding from taxpayers in 2010-11. That is an estimated £80 million in paid staff-time plus £33 million in direct payments. That is £7 million more in direct payments than 2009-10 (although the Skills Funding Agency was unable to provide figures for its legacy organisation in 2009-10)
At least 2,840 full time equivalent public sector staff worked on trade union activities or duties at taxpayers’ expense in 2010-11. This means that there are now more taxpayer-funded trade unionists in the UK than British Transport Police officers (2,835)
At organisations which provided data for both the years covered in this note, there was an increase of 32 full time equivalent public sector staff from 2009-10
Our figure of 2,840 is almost certainly an underestimate. Bodies that do not record facility time acknowledge that staff do utilise it. For example, Wrightington, Wigan and Leigh NHS Foundation Trust in the North West have 42 union stewards who meet regularly, but the time they spend on this is not recorded
257 organisations kept no record of the time taken off by staff to carry out union duties
In the public sector 0.14 per cent of the annual pay bill is spent on facility time, compared to 0.04 per cent in the private sector. If the number of public sector staff working for trade unions were reduced by the same ratio 2,028 full-time equivalent staff could return to frontline services, equivalent to saving taxpayers £57.2 million
The organisation with the highest number of staff working on trade union activities was the Department for Work and Pensions, with 308 full time equivalent staff. HMRC had the second highest number, with 181 full time equivalent staff
Birmingham City Council was the local authority with the highest number, with nearly 62 full time equivalent staff working on trade union activities and duties. The second and third placed local authorities were Coventry with 29 and Nottingham, with 26
The top quangos were Defence Equipment and Support with 36, Transport for London with 31 and Remploy with 29
The organisation in Scotland with the most employees on union duties was the Scottish Prison Service, who had 34 full time equivalent staff
In Wales, Betsi Cadwaladr University Local Health Board came top with nearly 11
In Northern Ireland, Belfast Health and Social Care Trust had the most with 16 full time equivalents
The top police force was the Metropolitan Police Force who had 16 full time equivalent staff undertaking union duties

Click here for the full report, including a breakdown of local councils, fire authorities, NHS PCTs and trusts and more

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

“Taxpayers shouldn’t be funding staff to work for trade unions, providing them with a huge activist base to support strikes and freeing up resources for political campaigns. Paying for the salaries of full-time union staff and the many grants the unions receive is yet another burden on hard pressed families, diverting money they expect to be spent on frontline services. The Government need to take action and end this scandalous subsidy for unions disrupting services in a vain attempt to stop necessary restraint in public spending.”

Click here for the full report, including a breakdown of local councils, fire authorities, NHS PCTs and trusts and more

TaxPayers’ Alliance reveals November’s “Pin-Up” and “Pinhead” of the Month

Nov 24th, 2011

by Jonathan Isaby.

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Today the TaxPayers’ Alliance announces the latest recipients of its monthly awards to celebrate those in power who have sought to save – and waste – taxpayers’ money.

The man, woman or organisation to be congratulated for saving public money or acting in the interests of the hard-pressed taxpayer is named the TPA’s “Pin-Up of the Month”, while whoever is found to have shown the greatest disregard for taxpayers’ cash is shamed as the TPA’s “Pinhead of the Month”.

November 2011’s Pin-Up of the Month is Martin Callanan MEP, the Conservative MEP for the North East of England who also leads his party’s delegation in Brussels. This month he has consistently put country and constituency before loyalty to his party or the Coalition Government, most recently in his reaction to the closure of the Alcan aluminium smelter in Northumberland. It will shut as a result of soaring energy costs and punishing green taxes – an issue the TPA highlighted last week in a paper, Industrial masochism: The carbon floor price and energy intensive industry.

Mr Callanan observed that the workers being made redundant in his constituency were seeing “their livelihoods sacrificed to the obsession with all things green”, and that alongside the previous Labour administration and Brussels-inspired regulations, “our Government is partly to blame”. On the Eurozone crisis, he has given a refreshingly honest assessment of the situation, calling for Greece to default on its debt and leave the euro, whilst he has also fervently opposed any increase in the EU budget while national budgets are being cut.

Meanwhile, the TPA’s Pinhead of the Month for November is Cllr Jason Kitcat, a Green Party councillor in Brighton and Hove, where he is Cabinet member for Finance & Central Services in the Green minority administration. He has been boasting this month about his administration’s decision to refuse the Government funding which would allow for a freeze in council tax next year and to instead impose a 3.5% increase in council tax for Brighton and Hove residents.

Jonathan Isaby, Political Director of the TaxPayers’ Alliance, commented:

“TheTaxPayers’ Alliance has always believed that key to delivering taxpayer value for money is exposing those in power to public scrutiny by ensuring that there is transparency and openness in how they spend our hard-earned cash. And as well as making examples of those who have shown a disregard for public money, it is important to recognise those who have tried to do the right thing by taxpayers.

“Martin Callanan has shown himself to be a doughty defender both of British interests when it comes to fighting increases in the EU Budget and also of his constituents in the North East, whose jobs are being destroyed by the Government’s misguided green taxes. It has also been refreshing to hear a British politician saying about the Greek economy what so many others are thinking but have dared not say. He is a worthy Pin-Up of the Month.

“Sadly, Jason Kitcat seems to revel in being part of the only council administration anywhere in the land currently planning to increase council tax next year, when most others are seeking to implement a freeze or a cut. Council tax payers in Brighton and Hove have every right to feel dismayed that their civic leaders have so little regard for their hard-earned cash that they want to snatch even more of it.

“Council tax virtually doubled over the last decade – without an equivalent increase in quality or quantity of services – so Cllr Kitcat and his colleagues should be looking at how to make savings from what they are already taking. Earlier in the year we found the council’s mileage rate to be 65p, rather than the HMRC-recommended level of 45p, whilst it was still employing three “European Officers” and three political advisers. Has anything been done to rectify that waste of taxpayers’ money? Other councils are cutting their coats according to their cloth: Brighton and Hove should follow suit.”

TaxPayers’ Alliance attacks carbon floor price as industrial masochism

Nov 18th, 2011

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TaxPayers’ Alliance says carbon floor price will:

Increase total global greenhouse gas emissions
Threaten tens of thousands of jobs as activity contracts in the UK
Raise significantly less tax revenue than expected as major firms move energy intensive industry abroad

New research by the TaxPayers’ Alliance (TPA) finds that, as well as increasing domestic energy prices, the carbon floor price threatens energy intensive industries whose costs will rise in Britain while their competitors’ costs in the rest of Europe fall, and tens of thousands of jobs are at stake. Some companies have made it clear that the rise in costs threatens billions in new investment, or even the ability to keep major plants open.

The policy could devastate British industry by undermining competitiveness:

For some major industries – such as steel or chlor-alkali – energy represents between a quarter and well over half of total costs. Any substantial increase in those costs, particularly compared to our key industrial competitors, will make it impossible for them to compete in the UK.
The largest energy consumers already pay up to 10 to 25 per cent more than in Germany, and 60 to 75 per cent more than in France. The carbon floor price alone will add another 10 per cent to their energy costs by 2020, while reducing costs for their competitors. The burden is exacerbated as the carbon price floor has not been accompanied by a ceiling, which means industry still faces the possibility of damaging price spikes.

That will have a number of consequences:

The carbon floor price will increase total global emissions as emissions are exported to other countries where production is less efficient, and it does not cut the overall cap on European emissions.
Jobs will be threatened. For example, Tata Steel employs around 20,000 people. Three to four times as many jobs may be at stake with suppliers and contractors. And should that activity contract there would undoubtedly also be job losses in the wider economy. Overall employment in energy intensive industries has been estimated at 225,000.
Revenue from the new tax could be offset by reductions in revenue if major firms in energy intensive industries contract their activities in the UK. For example, INEOS report that they pay £600 million a year in VAT and £70 million a year in PAYE and NICs. Tata Steel report they pay £280 million a year in PAYE and NICs.

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

“Putting in place a carbon floor price that threatens major, successful British industries with huge rises in their costs is absolute madness at a time when we need the economy growing, and business bringing investment and jobs here. Particularly when it will mean workers in Britain bear more of the burden, but overall global emissions are higher than they would have been without our politicians making such an expensive mistake. The Government should scrap the new tax, or at least ensure that energy intensive industries aren’t disadvantaged competing with rivals around the world. George Osborne needs to abandon this industrial masochism.”

Excess motoring taxes mapped

Nov 16th, 2011

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Last week, we revealed the excess motoring taxes for each council area.

Yesterday there was a major debate in the Commons about the extent to which high taxes are making life much too hard for drivers getting to work, and stopping the haulage industry keeping the economy moving.

Using this new interactive map, you can now see just how much motoring taxes affect motorists both in your local authority and across the UK. To view the data, simply click on a local authority below.

Clicking on an authority will allow you to tweet the results for your area – why not let your local MP know?

Merging Income Tax and National Insurance would just be more honest

Nov 15th, 2011

by Matthew Sinclair.

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Over the weekend Kamal Ahmed, Business Editor at the Sunday Telegraph, reported that the Government is slowly moving towards simplifying the tax system by at least merging the administration of Income Tax and National Insurance. Our research on the growing complexity of Britain’s tax code shows that an ambitious attempt to simplify the system is needed. And in another recent paper we showed how a full merger was possible.

A full merger, and bringing the two taxes together instead of just having them work the same way behind the scenes, isn’t just simpler. It would also be more honest. Here is a simple new video, produced with visualisation experts See What You Mean, that sets out how the tax system understates how much we’re really paying, in Income Tax and Employees’ National Insurance – even before we get onto Employers’ National Insurance which also depresses your wages:

Click here to tweet the video to your family and friends

TPA reveal excessive motoring taxes in each council area ahead of fuel vote in Commons

Nov 10th, 2011

Click here to read the full report, including results for every council area

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Just days ahead of a vote in Parliament on the subject of fuel taxes, new research from the TaxPayers’ Alliance (TPA) shows for the first time how excessive motoring taxes affect drivers in urban, suburban and rural areas very differently.

Click here to read the full report, including results for every council area

With a petition calling for “cheaper petrol and diesel” securing well over 100,000 signatures, the future of motoring taxes is set to be debated again on 15th November 2011.

Motoring taxes at their current rates cannot be justified by the need for spending on the roads and the contribution of road transport to climate change. Those who live in small towns or rural areas, where a car is often the only practical way of getting to work or accessing services, are hit particularly hard by high rates of Fuel Duty and Vehicle Excise Duty.

This research note uses census data to reveal how motoring taxes, despite being set nationally, affect motorists in each local authority area very differently.

The key findings of the research are:

Fuel Duty and Vehicle Excise Duty raised £31.5 billion in 2009
Road spending in 2009-10 was £9.9 billion and the social cost of road transport emissions was £3.5 billion in 2009
As a result, excess green taxes were £18.1 billion, or £293 per person
Excess motoring taxes varied starkly between urban areas like Camden, where they were £64 per person, and rural areas like Maldon, where they were £566 per person
Flintshire drivers pay the most excessive motoring taxes in Wales, £429 per person
Shetland Island drivers pay the most excessive motoring taxes in Scotland, £566 per person

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

“British motorists are hit unfairly hard by motoring taxes that are far too high. Families in the suburbs and rural areas suffer the most as driving is so often essential outside city centres. Everything from driving to work, to going to the shops, to getting the kids to school is made much more expensive and that squeezes the budgets of people struggling enough with other pressures on their finances. George Osborne should follow up the cut with at least the freeze for the rest of this Parliament that the public have demanded. Politicians should stop ripping-off British motorists with the highest taxes on petrol in the EU.”

Community National Service: Torquil Norman in conversation with Emma Boon

Nov 7th, 2011

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Sir Torquil Norman, founder of The Roundhouse Trust, joins TPA Campaign Director Emma Boon to discuss ‘Community National Service’, his proposal to tackle the maladies of twenty-first century British society, particularly among young people, which places self-reliance rather than state-reliance as the guiding force.

You can purchase a copy of Torquil’s book ‘Kick the Tyres, Light the Fires’ from Amazon here.

TPA launches major tax transparency campaign

Nov 3rd, 2011

Click here to read more about the app

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PIONEERING SMARTPHONE TAX APP AND REPORT SHOWS TRUE COST OF PURCHASES

The TaxPayers’ Alliance (TPA) has launched a major tax transparency campaign, releasing a tax app and research showing the true cost of everyday items.

Click here to read the research

Click here to find out more about the app

The Tax Buster app for smartphones allows shoppers to find out how much they really pay when buying everyday items.

With a few details about any purchase Tax Buster can calculate how much money from an item went on VAT and duties. It will also tell a shopper how much they had to earn before taxes to make the money to buy the product.

For example:

20 cigarettes that cost £6.49 would have been £1.24 without indirect taxes. Paying the £6.49 required £11.35 in earnings before income and corporate taxes are taken into account.

Filling the car up with £60 of petrol would have only cost £23.86 without indirect taxes. Paying the £60 required £104.84 in earnings before income and corporate taxes are taken into account.

The app aims to bring greater clarity and help illustrate the need for more transparent taxes. The Government has been pushing for more spending transparency, so the TaxPayers’ Alliance is now pushing for greater tax transparency to match this.

The app is being released with a report detailing the taxes on everyday items like wine, tobacco and fuel. Taxpayers will be able to see, at the touch of a button, the extent to which taxes increase the amount they need to earn to afford the items they purchase.

Click here to read the research

Matthew Sinclair, Director, said:

“It is high time shoppers realised how much tax they are really paying. From VAT and excise duties pushing up prices, to income taxes taking a huge share of every penny they earn, to taxes on business that are passed on in wages, taxpayers are paying more than ever for politicians’ vain attempts to finance their wasteful spending. The tax buster app will act as a stark reminder of how punishing taxes make it so much harder for families to make ends meet.”

TaxPayers’ Alliance reaction to London cyberspace conference

Nov 2nd, 2011

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As the two-day London cyberspace conference draws to a close, TaxPayers’ Alliance Head of Digital Policy Dominique Lazanski offered this reaction:

“It’s great to see a commitment to including many individuals and organisations in the process of discussing Internet and digital policy at the London Cyberspace Conference. It’s also good to hear that many governments support business and industry solutions to problems like cybercrime. It’s clear from the conference discussions that the Internet is an enabler of freedom, economic growth, and prosperity. I hope see even more engagement and communication among all individuals and organisations who weren’t in attendance. And I also hope that governments stand by their promise to use light touch regulation and promote private sector innovation going forward.”

New Research: Sustainable Development Commission credit card spending revealed

Nov 2nd, 2011

by Chris Daniel.

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In the latest in our series uncovering spending on credit cards by Britain’s wasteful quangos, we expose £185k of spending between April 2009 and March 2011 at the Sustainable Development Commission. This is further evidence that the decision to abolish this quango was the correct one, in the process saving taxpayers’ millions of pounds.

Last week, Chris Daniel wrote about the Government’s decision to publish spending on GPCs over £500. As this research shows, the Government should go further and publish all spending on credit cards to catch all wasteful spending. It must surely be easier to publish a whole credit card statement, as opposed to going through them and removing spending under £500.

The key findings include:

More than £14,000 spent on 4* Hotels, including the Hilton Grosvenor in Edinburgh and the Thistle Hotel in Kensington Gardens.
More than £10,000 spent on air travel and £62,000 on trains with the total travel bill totalling £80,000.
£299 paid to the Royal College of Music.
£1,483 paid to Apple Computers.
£750 to ‘The Adam Pottery’ in Edinburgh.
£135.30 at “Forget-Me-Knott” a glass engraving specialist.
£448 on RSPB images.
£200 to Scottish Whisky Heritage and £216 on Scotch Malt.

Responding to the findings, our Director Matthew Sinclair said:

“This outrageous spending is yet more evidence that the Sustainable Development Commission was anything but sustainable. It was an unaccountable quango that milked taxpayers while arguing against economic growth. With the commission now consigned to scrapheap, taxpayers will be thankful that there is one less pointless quango racking up ludicrous bills on credit cards by spending on luxury hotels and flights abroad. Government procurement cards can be a great way to ensure there is more transparency in public spending, but those using them should be responsible and remember who pays the bills.”

Download the data here

TaxPayers’ Alliance reveals October’s “Pin-Up” and “Pinhead” of the Month

Oct 28th, 2011

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Today the TaxPayers’ Alliance announces for the second time its new monthly awards to celebrate those in power who have sought to save – and waste – taxpayers’ money.

The man, woman or organisation to be congratulated for saving public money or acting in the interests of the hard-pressed taxpayer is named the TPA’s “Pin-Up of the Month”, whilst whoever is found to have shown the greatest disregard for taxpayers’ cash is shamed as the TPA’s “Pinhead of the Month”.

October 2011’s Pin-Up of the Month is Margaret Hodge, the Labour MP who chairs the House of Commons Public Accounts Committee. At a session of her committee this month, she mauled Dave Hartnett, the Permanent Secretary for Tax at HM Revenue and Customs for lying about a deal with Goldman Sachs worth millions. Aided in her questioning by colleagues, including long-serving committee member Richard Bacon, she not only accused Mr Harnett of lying to another parliamentary committee about the affair but also of “ripping off the taxpayer”. It has since emerged that after an intervention by Margaret Hodge, the Cabinet Secretary is going to investigate how to increase the accountability of HMRC in its dealings with big business.

Meanwhile, the TPA’s latest Pinhead of the Month is Cllr Nick Clarke, the Tory leader of Cambridgeshire County Council. At a council meeting earlier this month, Cllr Clarke led moves to increase councillors’ allowances by an eye-watering 25%.

Only four of his fellow Conservatives voted against the rise, which will increase councillors’ allowances from £7,610 to £9,500 and Cllr Clarke’s own package from £29,856 to £38,000. The changes will cost Cambridgeshire council tax payers an extra £166,000 a year.

Jonathan Isaby, Political Director of the TaxPayers’ Alliance, commented:

“The TaxPayers’ Alliance has always believed that key to delivering taxpayer value for money is exposing those in power to public scrutiny by ensuring that there is transparency and openness in how they spend our hard-earned cash. And as well as making examples of those who have wasted public money, it is important to recognise those who have tried to do the right thing by taxpayers.

“This month Margaret Hodge has demonstrated why the Public Accounts Committee is arguably the most important of all the parliamentary committees. She is a redoubtable committee chairman whose mission is, in her own to words, ‘to ensure value for money for the taxpayer’. We salute her and her colleagues for their work, in particular this month for their part in holding HMRC to account for dodgy deals with Goldman Sachs.”

“Unfortunately Cambridgeshire taxpayers have this month badly been let down by their county council leader, Nick Clarke, who – along with all but four of his Tory colleagues – voted for a massive increase in their own allowances. A 25% hike in the taxpayers’ cash that councillors take for themselves would be hard to justify in the best of times, but when council employees are facing pay freezes and the council is looking for all kinds of savings, it really is profligate in the extreme.”

Taxpayer funding of trade unions debated in Parliament

Oct 27th, 2011

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Last night saw Aidan Burley, MP for Cannock Chase, call for an end to the taxpayer funding of trade unions. In a heated debate that attracted the attendance of Secretary of State Eric Pickles, Burley put forward a comprehensive case for the ending of what he called the “Spanish practice” of union activists who are paid for by the taxpayer but work exclusively on union duties.

During the debate the TaxPayers’ Alliance was praised and both our reports on the taxpayer funding of trade unions and the Trade Union Rich List were quoted extensively.

You can watch the debate here:

Midlands councils’ spending on flights revealed

Oct 27th, 2011

For the complete press release click here

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48 councils still jet-setting whilst 29 go for austerity

The TaxPayers’ Alliance (TPA) can today reveal the cost of flights by local authorities in the Midlands over the last two years. Our findings include business class and premium air travel and show that 48 councils in the region have continued to spend on flights despite tighter budgets. The 29 councils who did not spend any money on flights should be commended for using taxpayers’ money responsibly.

To read the full report click here

The key findings of this report are:

48 councils across the Midlands spent a combined total of at least £275,000 on flights between April 2009 and March 2011. Unfortunately Birmingham City Council was unable to provide the requested information, so the true figure is almost certainly higher
29 councils did not spend any money at all on flights over the period
Lincolnshire County Council spent more than £42,000 on flights, making them the highest spending council in the region
Redditch Borough Council spent more than £900 to send two employees to Brussels on a premium economy flight, whereas the same trip only cost Telford and Wrekin Council £400
Wolverhampton Council spent more than £7,100 on business class flights to Dubai and Bangalore in 2010-11.
Lincolnshire Council spent more than £27,000 on 12 trips to the USA and Canada, some of which were on BA ‘World Traveller Plus’ and business class. They also spent £4,000 on a business class flight to Tokyo
Nottingham Council spent almost £2,000 on a trip to Shanghai in China
Rutland Council spent more than £10,000 on flights to Accra in Ghana

To read the full report click here

For the complete press release click here

Matthew Sinclair, Director of the TaxPayers’ Alliance, said:

“It is shocking that some council staff have been jetting around at taxpayers’ expense. These local authorities need to find millions in savings in the coming years and with modern technology like video conferencing they needn’t spend large sums of taxpayers’ money on plane tickets. It is great that 29 authorities in the Midlands were prudent and didn’t spend a penny of taxpayers’ money on flights. However, others could cut back, especially those who have been enjoying the perks of business class at taxpayers’ expense.”

TaxPayers’ Alliance calls for National Insurance to be scrapped, to stop future HMRC fiascos and to promote growth

Oct 20th, 2011

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You can read the full report here

The TaxPayers’ Alliance (TPA) has called for National Insurance (NI) to be scrapped to make the tax system simpler and more transparent. The need for tax reform has never been more pressing, particularly in light of this week’s revelations about HMRC errors.

The campaign group says National Insurance serves no purpose and has set out a package of measures to merge both employers’ and employees’ contributions with Income Tax. The call comes as part of the Treasury’s call for feedback as part of its consideration of the integration of the operation of the income tax and National Insurance contributions system.

The TPA is urging George Osborne to announce the move in his Autumn Statement as a key measure to kick-start economic growth. It would also fit with the transparency agenda that has seen, for example, councils urged to publish all spending above £500 and the Government publish details of all contracts with suppliers. Details of how the reforms could be executed have been laid out in a report that breaks new ground since this issue was last considered by government, when Nigel Lawson was Chancellor of the Exchequer in the 1980s.

The move could significantly reduce the burden on businesses of complying with these taxes, as well as making it easier for people to see exactly how much tax they are paying on their earnings.

You can read the full report here

The key findings of this paper are:

The Government should abolish National Insurance – both for employers and employees. It makes the tax system opaque, complicated and costly yet serves no purpose that could not be fulfilled by the Income Tax system. Abolition would make it simpler, cheaper and more transparent
Pensioners, the self-employed and others who pay reduced rates of National Insurance should not pay more tax when it is merged into the Income Tax system
New Income Tax rates for these groups can be introduced to ensure they do not lose out. Any subsequent alignment should only happen by reducing the higher rates, rather than increasing the lower rates
A first stage of a merger should operationally align the charges, publish employers’ National Insurance on wage slips and rename National Insurance to something which more honestly and accurately describes its function
A second stage should simultaneously abolish National Insurance completely, mandate a reassessment of earnings to incorporate employers’ National Insurance contributions and adjust Income Tax rates to collect the same revenues from the same individuals as before abolition

You can read the full report here