We're All Against This Together

It’s a strange day when the TaxPayers’ Alliance and the TUC are singing from the same hymn street. It’s even stranger when Guido and Ed Balls find themselves in agreement. The TPA have finally engaged in the battle this morning with a video attacking a prospective VAT rise. Guido can’t understand the morality of instigating a regressive tax rise that will mean more, not less, state dependency, leaving those who already suffer the most being even more broke. A hike in VAT to 20% would cost someone on average earnings £150 a year, that may not be much to millionaires like Dave, George or Nick, but those on lower incomes will definitely feel the pain.

The Coalition simply has no mandate to raise VAT, they were all asked repeatedly during the election campaign and replied they had “no intention” of raising VAT. Clegg actually campaigned against a VAT hike.

A 2.5% rise in VAT to continental levels is not worth the hassle, not when there are far more effective ways of saving money rather than further taxation. Why not start with the disastrous outsourcing of I.T. contracts? A study of government I.T. contracts made over the past 5 years shows that the taxpayer has ended up paying 40% or more above the market rates for outsourced services.  This means the public sector could save up to £6 billion on its annual I.T. spend of around £14 billion without affecting front line services. Overspending on government I.T. contracts alone is equal to 1% of GDP…

UPDATE: The TPA’s video:




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Quote of the Day

David Cowling, the BBC’s head of political research, in an internal memo…

“It seems to me that the London bubble has to burst if there is to be any prospect of addressing the issues that have brought us to our current situation. There are many millions of people in the UK who do not enthuse about diversity and do not embrace metropolitan values yet do not consider themselves lesser human beings for all that. Until their values and opinions are acknowledged and respected, rather than ignored and despised, our present discord will persist. Because these discontents run very wide and very deep and the metropolitan political class, confronted by them, seems completely bewildered and at a loss about how to respond (“who are these ghastly people and where do they come from?” doesn’t really hack it). The 2016 EU referendum has witnessed the cashing in of some very bitter bankable grudges but I believe that, throughout this 2016 campaign, Europe has been the shadow not the substance.”

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