Freedom-lovers won’t be shocked to learn that the government’s war on smokers is torching more than just cigarettes. According to HMRC’s own figures, illegal tobacco sales are already costing the Treasury a whopping £2.2 billion annually. When the generational smoking ban kicks in, that number is only set to rise…
A new JTI survey shows that 64% of UK are familiar with illegal tobacco, while 81% believe there is not enough enforcement to stop illegal tobacco sales. Over 90% of consumers are alarmed that illicit tobacco trade is fuelling organised crime…
JTI’s Nicky Small said:
“This research clearly demonstrates the concerns of consumers around the illicit sale of illegal tobacco and its impact on communities across the UK. There is a proven link between illegal tobacco and international organised crime groups. The consequences for the taxpayer are significant.”
Meanwhile, the IFS wants tax hikes to plug the gap left by “the predictable disappearance of tax bases for… tobacco duties,” as sales rake in a hefty “£9 billion in the last financial year.” Up in smoke…
Rachel Reeves has refused to say she wants taxes to go down in a shift from her pre-election rhetoric. Voters must be tearing their hair out…
The Chancellor is up before the Lords Economic Affairs Committee this afternoon. Tory Lord Blackwell asked if – seeing as hers is the first government to get more than 35% of GDP in taxation since the war – Reeves has “a ceiling or view on what is the right level of taxation in the long run once you get through the current debt problem.” Good question…
Reeves could not. She said: “So the OBR forecast for this parliament uh have in the final year of the forecast period tax as a share of GDP at 38%. That’s not a target but that reflects the fiscal rules… those are the things that are my constraints and the anchor for fiscal policy are those two fiscal rules rather than a tax to GDP ratio.” She went on to say the ratio could be reduced by raising GDP. Pressed on whether she was targeting an increase or decrease in the tax-to-GDP ratio Reeves could not answer and said: “It’s a stability rule to balance day-to-day spending with tax receipts and investment rule to get debt down as a share of GDP.” She won’t even say is trying to get it down…
Guido remembers when Reeves railed against a “70-year high” in taxation at the election and at the rising forecast for tax take. Poacher, gamekeeper…
In today’s Tory reshuffle Guido can reveal that strong performer Neil O’Brien has been promoted by Badenoch to the Shadow Cabinet – given a new role as ‘Shadow Minister for Policy Renewal and Development.’ He will lead on the policy programme as Party Conference approaches on 5 October…
O’Brien is a former SpAd to Osborne and subsequently Theresa May and served as a levelling up minister under Boris. He’s being moved from the education team up to Shadow Cabinet…
He is one of the most prolific new thinkers and he well connected to the now-influential online right. A sound hire…
James Cleverly has been appointed Shadow MHCLG, Kevin Hollinrake Party Chairman, Stuart Andrew Shadow Health and Nigel Huddleston Shadow DCMS. Five confirmed appointments so far…
UPDATE:
Julia Lopez takes DSIT from Alan Mak.
Richard Holden takes Transport from Gareth Bacon.
The Bank of England is playing down the chances of an intrusive Central Bank Digital Currency today. A win for fans of privacy…
Briefings from staff at the Bank – which previously said it believed a “digital pound” was “likely” to be needed – indicate that the BoE is letting private businesses take the lead and won’t push for a CBDC at this time. They are pernicious risks to financial privacy and a successful hack could topple the system…
Later at his appearance before the Treasury Select Committee in the Commons today BoE Governor Andrew Bailey said private efforts could generate “huge benefits” themselves: “My view is, if that’s a success, I question why we need to introduce a new form of money.” Bureaucrats push for the currency to exact more control over transactions – which would all be stored on a central ledger. Raising taxes would be easier than ever…
While Labour flounders in the polls, they’ve been splashing taxpayer cash to promote their policies. According to a written parliamentary question by Tory MP Richard Holden, the Cabinet Office forked out a staggering £650,000 on an advertising campaign for the National Minimum and Living Wage increase. Never mind that most people would find out about the policy just by looking at their payslips…
That includes £35,580 spent pushing the policy on beer mats in pubs and £19,500 for ‘six digital influencers’ to flog the policy online. For £650,000, you could:
The taxpayer may have a view on which should be prioritised. UK DOGE recommends costs are cut here…
There is a little communications uncertainty ahead of the Tory reshuffle this afternoon – the lack of any concrete moves has set off a powder keg of media and parliamentary speculation. And unsurprisingly some dissatisfaction in Guido’s inbox at the mooted moves…
This sums up the hypothetical state of play – though Guido should emphasise this is based on internal or media rumour and not yet confirmed. Stride is said to be safe as Shadow Chancellor – a question is continually raised there over his position on various economic issues. The Tories say Cleverly will be returning – a nugget briefed to the BBC this morning – with no follow up as yet. Ed Argar has stepped down as Shadow Health Secretary – this was expected and is a voluntary move. There is a wild rumour going around (via The Telegraph) that Badenoch loyalist Rachel Maclean is set to replace Lord True as Shadow Leader of the Lords. Many Tories think that simply can’t be right…
It’s all but confirmed that Kevin Hollinrake is set to become party chairman. Stuart Andrew’s fate is said to hang in the balance with either an exit or a promotion on the cards. So far there has only been an exchange of letters with Argar before official confirmations this afternoon. Tories – not to mention the hacks – are madly discussing the rumours and are increasingly antsy. Wouldn’t it be better just to stick it all out there…
Speaking at his speech on how to achieve “progressive capitalism” Wes Streeting fired a dig and Andy Burnham:
“Bond markets are not bond villains and fiscal rules matter.”