The Institute of Economic Affairs (IEA) has published a £75 billion tax-cutting ‘Alternative Budget’ just over a week before John Healey delivers the real thing next Wednesday. The IEA says its plan would save a worker on the median wage £644 a year in income tax and employee National Insurance, rising to around £1,300 a year on a median-paid job once the cut to employer National Insurance is included. Healey is welcome to copy their homework…
The main proposals:
The IEA projects a £7.8 billion current budget surplus in 2027-28, with net debt falling to 91.6 per cent of GDP by 2030-31. IEA Director General Lord Hannan and Chief Economist Valentin Boboc have also written directly to John Healey. Guido has the letter…
“We recognise that restoring public finances will require difficult choices on both taxation and spending, which will require close scrutiny. After all, both people and businesses deserve to know what alternatives are available before they are asked to contribute more.
We believe our proposed reforms would improve Britain’s economic prospects. The Alternative Budget sets out the tax and spending choices needed to pay for our proposals.”
To read the full Alternative Budget, click here. Mandatory for those working in HM Treasury…
Read the IEA’s letter to Healey below:
“Dear Chancellor,
As you prepare to deliver your first Budget, you face difficult choices. The public finances are under pressure and there will inevitably be calls for further tax rises.
But higher taxes are not inevitable.
Today, the Institute of Economic Affairs published its Alternative Budget to demonstrate what a different approach could look like. Rather than simply calling for lower taxes, we have set out how they can be paid for and what choices would be required.
Our Alternative Budget would:
- Reduce the tax burden on work, saving a median-wage earner £644 a year in income tax and employee National Insurance
- Abolish stamp duty and inheritance tax
- Abolish customs tariffs to tackle the cost of living and the cost of doing business
- Introduce new Defence Bonds, available through stocks and shares ISAs, allowing British savers to help finance national defence, with funds ring-fenced for defence spending
- Bring welfare spending under control
- Bring the current budget into surplus and put debt on a falling path
We recognise that restoring public finances will require difficult choices on both taxation and spending, which will require close scrutiny. After all, both people and businesses deserve to know what alternatives are available before they are asked to contribute more.
We believe our proposed reforms would improve Britain’s economic prospects. The Alternative Budget sets out the tax and spending choices needed to pay for our proposals.
Chancellor, your first Budget is an opportunity to set a clear direction: a tax system that does less to penalise work, hiring and investment, alongside serious discipline over public spending. Before reaching for further tax rises, we hope you will consider the alternative we have set out.
Robert Jenrick on the Today programme:
“Can you now give a guarantee to your listeners this morning that no BBC presenter in the future will be exposed as a paedophile, as a number have been in the recent past? No, of course you can’t…”