Those who battle Treasury orthodoxy of no tax cuts often end up going for a feeble compromise of allowing more tax offsets, tax free allowances and temporary concessions. These are well intentioned and marginally better than unrelieved high taxes, but they will not provide the big boost to investment we need.
A business looking at an investment is of course worried about the up front costs and cash outflows when making the initial commitment. An investment allowance allowing the business to pay less businessĀ tax in the year or two when it is building the new factory can help with that initial cash outlay. What the up front allowance cannot do is to make the figures for the rewards on the investment over the life of the project look much better to justify going ahead in the first place. An investment when our business tax rate is 19% looks a lot better over 25 years than if you have to put a 25% tax rate in. An investment earning Ā£100 m of profits over 25 years will pay Ā£6m or 37% more tax at 25% than at 19%.
Worse still is many company investors will look at where best to place their next factory or office from a list of countries ranked by their headline tax rate. Where the UK at 19% was in a decent place on the table, at 25% it is an also ran. Many lists will not include countries with a rate that high. The company with a possible Ā£100 m of profits will stay and pay Ā£19m but may well not hang around to pay Ā£25m.
The Treasury needs urgently to rethink its policies to attracts and sustain investment in the UK. 25% does not hack it, with or without super allowances at the beginning.
February 15, 2023
Good morning,
It is not just those investors that high taxes dissuade, it is also those who invest in them via shares. This intern will have a negative effect on the amount of money coming into the UK and further recusing the overall tax take.
We need to develop a system in this country whereby the State can only spend money it gains via taxation. Borrowing has insulated the State and especially those who work for it from the effects of an economic slowdown. The State and the Public Sector needs to be in symbiosis with the Private Sector and realise its importance and not just a hapless cash cow.
Less is more.
February 15, 2023
Borrowing and BoE & Sunak’s money printing that caused all the inflation Sunak know claims is his priority!
February 15, 2023
I am very alarmed by this Brexit bonfire bill.
I appreciate we want to diverge from EU law.
We should be changing laws slowly and carefully when required.
We should not have a bill that gets rid of 3,700 laws and gives us only a year to change them. It is a political stunt. It is clearly playing fast and loose with the law.
I think Mr Rees Mogg has a lot to answer for on this. To watch that man destroy is own country and then call himself a patriot is galling in the extreme.
February 15, 2023
What’s the betting Fishy and his mate ignore all the warnings and plough on with all the tax rises and probably schedule a few more.
Who is actually advising or controlling that unelected pair of morons.
February 15, 2023
The betting is odds-on for high and higher taxation
February 15, 2023
What Sir John states is the bleeding obvious. Unless the Snake has agreed an international Corporation tax on his own without mandate. Bit like throwing away our taxes on aid and climate change reparations. Please don’t allow him on foreign jaunts, we the 46% can’t afford him. Why would any foreign company invest here with these fools in charge.
February 15, 2023
They won’t lower taxation and they are gambling that tax offsets can be raised or lowered at will, without claims of tax rises and tax cuts being made. I doubt the tax offsets will last long. They really do not want Brexit UK to succeed.
February 15, 2023
@Lifelogic – the highest degree of hypocrisy keeps coming out of the mouths of this Government and their friends, always going as close to saying we caused the problem, but by implication it must have been the other guy. Then to rub salt in the wound they caused they talk about it, promise reviews and do absolutely nothing
February 15, 2023
No, complexity is generally not a good thing.
That is why brexit is such a baleful burden, with the piles of it that it has introduced into the lives of businesses and ordinary individuals who may have connections with the Mainland.
February 15, 2023
You say Mainland – are you now living on the Isle of Wight?
February 15, 2023
He’ll just geographically challenged
February 15, 2023
Cloud cukoo land more like
February 15, 2023
My main clients are all on the continent, and since 2016 they have gradually increased their orders for the services I export from the UK. I do however notice en passant some rather strange corporate accounting tricks involving VAT and subsidies that are illegal but mass-tolerated by the EU – thank God we are not still in that fraudulent and sclerotic organization!
February 15, 2023
I concur with this comment.
We have several multinationals who want VAT free invoices sent to Eatern European EU member states for services mainly delivered in the uk
As they are reclaiming VAT anyway I can only assume this is a management charge scam
February 15, 2023
Why do you keep going on about Brexit, as if it’s a significant matter?
Compared to government waste, the detail of whether or not the UK is in the EU is of negligible concern.
Why not forsake Nottingham and run to the continent if that’s what you like?
February 15, 2023
Mark, another point that puts off investors is instability. A tax rate that bounces up and down leaves everyone guessing on the long term level and companies will steer clear. The UK is not offering a message of stability on tax with moving basic rates and windfall charges.
Fully agree there should be legislation to say Government has to balance the books. That said, USA has this and ignores it year after year.
February 15, 2023
On one hand the cry is “we need more investors” but as soon as we get them the cry becomes “we’ve sold all our businesses overseas”. We have only needed ‘inward investment’ to pay for our Socialist State living beyond our means.
One size does not fit all, the German economy does not suit the whole of Europe (especially us). We are the best judges of how to spend our own money. We need a Government of “Tough Love” not one that doesn’t want to be called “The Nasty Party” or one that reviles everyone else as “Far Right”.
With their rose tinted Socialist spectacles on our Governments have been banking on Fusion to fuel us.
It didn’t work, the time ran out. Renewables are fine (but in economic terms not as cheap as Coal) but we aren’t prepared to turn our lives and industry on and off when the wind doesn’t blow.
“If rape is inevitable, lie back and enjoy it” – the Chinese are building one Coal fired power station a day, live with it, rail if you must, but get on playing the hand you’ve got not 5 Aces.
BBC say Sturgeon to quit ??!
February 15, 2023
”State can only spend money it gains via taxation”
Gets my Vote
February 15, 2023
……and mine it’s just the stupid politicos and the blob. What’s not to understand by living within ours, the taxpayers means!!
February 15, 2023
The treasury are unable to think about what policies are best, because they have never been in the position or have any experience of starting up a business and attracting investors.
They have never experienced the worry sleepless nights, endless meetings and negotiations trying to raise the revenue to attract the right people to make it a viable success..
They don’t have to, it is not their money or concern. When the faceless puppeteers pull their strings they react but they can always blame someone or something else..
February 15, 2023
Normally, the best people would be elected and appointed to office. Then they do the right thing. Opinions of colleagues and others contribute further to assist fine tuning, supporting their sensible way ahead.
However, the bozos presently in charge operate against our nationās interests. They push wrong things and need their colleagues to force them toward a sensible direction.
The UK should be governed better instead of enduring the succession of destructive mistakes the present PM and Chancellor cause; and emerged from themselves as rejects in the first place.
February 15, 2023
Been there TT
Middle of the night and wondering what we’d do if no one ordered anything next week, with the payroll and rent due. Public servants don’t have to (personally) worry about balancing their costs against an uncertain income. Nor do they have anyone taxing that income (just to add to the sleeplessness). No Senior Civil Servant or Politician is ever required to use their home as business collateral or to raid their pension fund to help the business over quiet periods. Perhaps they should try it, they might get better at controlling expenditure.
February 15, 2023
So true IanT
You omit the worry on finding tax due “on account” for the next period when neither sales nor profits are known or assured.
February 15, 2023
Very true Ian, they don’t understand risk, real investment risk, risk of using your own money, the risk of losing your home and all your savings …..not ‘shall I get the bus today or risk the tube’
February 15, 2023
@turboterrier – all true, but they will do as bid by their EU masters, again confirming they dont get to think about it.
February 15, 2023
They also do not have to face an electorate that has seen their wealth, hopes and dreams dashed.
February 15, 2023
The Covid agenda was high taxing Socialism in action. Indeed the Covid project was the gateway issue that allowed the State to justify ever greater levels of power of our lives and over the economy. No doubt all Tory MPs approved of it including our esteemed host.
Reply I was one of a group who spoke and voted against the extreme lockdowns
February 15, 2023
Not all Tories did support it. There were a few sensible ones but with Labour wanting even more lockdowns and the likes what could 50-100 sensible Tory MPs do. Similarly on climate change where we had only a handful of sensible MPs not voting for it.
Many conclude why vote against and risk being punished by the party when the vote is going to be carried massively anyway given Labour’s position.
February 15, 2023
That’s pretty much a definition of collaboration, LL. Why resist, better to get along with those in power, as in France 1940. Contrast that with the brave doctor who stood up alone to Sajid Javid on an NHS vaccine mandate, and helped turn the tide.
February 16, 2023
when did collaboration include waving a white flag?
February 15, 2023
They could always walk!! Why stay within a party so clearly acting against all you stand for, and all the promises it made – yet again.
These handful of good Conservatives, if you believe they are, are having little to no affect.
The country is now surely in one of the worst states it has ever been, with escalating dangers socially and not just financially which seem to be all some care about, that surely the good few must feel total disgust that they are backers of a party that has brought all this about.
It is the Conservative party and their continuation of Labour policies, (financially and socially) that has caused all this and their desire to do the bidding of outside elements such as WEF before their duty to the people here.
My conscience would not allow me to stay knowing full well I had little chance to change it, and if you’re sensible input falls on deaf ears, why stay and help them do more damage?
Party loyalty? Well what about loyalty to the people you’re supposed to be working for?
February 15, 2023
@DOM Lockdowns, Socialist indoctrination. Then again a lockdown while permitting foriegn inflows from vastly more infected regions was the highest order of hypocrisy
February 15, 2023
SirJ I admire and appreciate your stance and efforts to project conservative values, however sometimes you do remind me of the Marshal Will Kane (Gary Cooper) in High Noon
February 15, 2023
“More Tax offsets are not as good as a lower rate” indeed more admin costs and more complexity.
Cut taxes fire the parts of the state that do more harm than good circa 50% ditch net zero and have a bonfire of red tape. But it is rather too late now. Boris & Sunak really needed to do this three years back.
February 15, 2023
We can dream of that future scenario… Oh to have a couple of genuine entrepreneurs running the country.
February 15, 2023
+++Agree
In other wordsā¦
Stop with the kettles of boiling water.
Stop poking us with long, sharp sticks.
Leave us alone!
February 15, 2023
I’d like each party to describe what they want from being in government, whats government actually for and what should it do ….and more importantly what they shouldn’t do
Just 10 clear points would suffice
February 15, 2023
+100
Agree.
And Iād like not sticking to a manifesto promise to be a crime punishable by imprisonment.
February 15, 2023
@Lifelogic The Conservative Governments have been promising those reductions for the last 13 years one way or another, even going as far as campaigning to get elected on that basis. Each time they do 100% the exact opposite. The State, the Establishment, the Government have gown exponentially over those years ā the delivery of real benefits to the UK and its economy have shrunk at the same time.
February 15, 2023
They needed to all that after 2015 and the slim majority they had. Admittedly why could not do it in 2010 as they were part of a coalition.
February 15, 2023
Surely growth implies more energy use which is not wanted by any political party.
We have been told we will live in cold houses, with expensive food, pay high mortgages, pay virtue taxes to support the grifters and be happy.
February 15, 2023
‘a feeble compromise’. Yes, and entirely the wrong way around. But then we have a government and leadership which is a feeble compromise.
February 15, 2023
Not a ‘feeble compromise’ but a well orchestrated instrument of a ‘coup’
February 15, 2023
Government policy from all parties:
Ban cars, lorries and all oil burning vehicles to prevent the planet overheating.
Tax all businesses very hard so they go, like Astra Zenika and Ford, abroad.
Make electricity out of wind power and solar panels (It doesn’t work.).
Also moon dust (honestly – this was in the Guardian).
If only Swift were still alive to write about the Isle of Laputa!
February 15, 2023
Not all parties – see the Reform Party for enlightenment
February 15, 2023
Glen. Agree!!!
February 15, 2023
Net zero is the law of the land and is favoured by the vast majority of MPs and peers. It is inherently anti growth and investment such that tax policies that would otherwise stimulate growth and investment have to be curtailed. Thatās why Sunak and Hunt will not budge and do what you – and we – want. Thanks to Conservative government we are a declining warehouse economy set to decline faster still with the impending election of Labour when, in due course, explicit degrowth policies will become the norm.
February 15, 2023
Good article. The impact of corporation tax rates on cash flows within an IA is not much understood by either MPs or the voters. Perhaps you could send a link to Mr Hunt, who, despite being an entrepreneur, doesn’t seem to understand it either.
There is now too little time before the next general election for this government to achieve much – but a small move in the right direction at the next budget, and a commitment to act further down the line, will help.
February 15, 2023
Inflation still over 10% due to BoE amd Sunakās vast money printing scam, net zero, the huge government waste. In reality rather higher for low paid workers and people with large mortgages and renters as socialist Gove and the tax system push people out of the property rental business and throttles the supply.
February 15, 2023
Kier Starmer just now (trying to detoxify Labour) āunder my leadership there will be no discrimination of any kindā but they will of course continue with all women lists for MPs – so blatant discrimination against men is fine it seems.
February 16, 2023
So can we rely on all the organisations beginning with the word ‘Black….’ to be outlawed within his term of office?
February 15, 2023
And on a personal level we have already list the best – brain drain after brain drain, because 45% and possible 20% VAT on privately funded education is not a winner.
No wonder Britain is no longer British and tolerates rule by alien bodies.
February 15, 2023
Unfortunately for Sir Johnās argument, the average age of a company on the register of companies was 8.5 years in 2021. The statistics for start-ups is even worse, 20% of them fail in the first year, 60% in three years (limelightdigital.co.uk āUK startup & small business statistics 2021ā).
So talking of the impact of company tax over 25 years is a not-too intelligent sleight of hand.
February 15, 2023
Always concentrating on the negative hefner, that same article you quote says:
Startup Success Stats
Donāt believe all the negative headlines. Thereās more than enough small business success stats to reveal that UK businesses are still thriving. ā1 company is formed every minute in the UKā
1 company is formed every minute in the UK (GOV.UK, 2019)
89% of UK startups survive their first year (ONS, 2019)
There were 5.8 million small businesses at the start of 2019, up from 5.7 million in 2018 (despite Brexit concerns) and up from 5.5 million in 2017. (GOV.UK, 2019)
The number of small businesses in the UK has increased every year since the year 2000 and is expected to do so throughout the ā20āsā. (GOV.UK, 2019)
Our Company Limelight Digital Previously known as āStudio-40ā.
Limelight Digital, claim to be “leaders in the world of digital marketing including search engine optimisation (SEO), pay-per-click advertising (PPC) and social media advertising & management.”
February 15, 2023
Good, you read the site, thanks.
So you are happy with Sir John choosing a timescale three times as long as the average duration of a typical start-up company. Donāt forget that Sir John not that long ago was encouraging people to start their own company (08/02/2023 āOwnership for all?ā) when it appears that about two thirds of them have to pack up within three years with the resultant loss of personal money and other assets, and likely problems with whoever were the possible money lenders.
I have been involved in EIS, SEIS and VCTs for more than ten years. From experience I can testify that around 60% of newly formed companies disappearing within three years is a proper estimate.
Arenāt you happy that a few people on this blog debunk some of Sir Johnās blatantly biased insertions? (Or if not āblatantly biasedā at least dangerously put without proper context). Or would you want to read day in day out only the reactions of his yes-men (and women)?
Anyway, at least that gives you something to answer to, eh?
Reply My timescale refers to large companies putting in major plant, wells, mines etc when they look at 25 year cashflows, not start up businesses! You do make yourself look ridiculous by trying to undermine everything I say by misconstruing it. Why do you bother?
February 15, 2023
Start ups find it easier to fold and reconstitute because of high tax Hef.
The average does not take account if this.
Yes many fail, rightly so but becoming inactive does not mean insolvent just preventing too much effort ending in taxation once you get a certain size being over taxied is inevitable if you are UK based but if you don’t reach that size it is possible to operate without paying the government your profits
February 16, 2023
Interesting Hefner, so why do you work with Seed Enterprise Investment Schemes, Enterprise Investment Schemes and Venture Capital Trusts when you are so damning of small enterprises and their chances of success? What do you do with these schemes pick the potential winners to invest in, if so perhaps it is you that is not such a good judge.
I have forty years of experience building small to medium size enterprises and working with other SME organisations. It isn’t start-ups that fail that have the problems with Corporation Tax (CT) but you know that and as you point out they’re unlikely to be making much profit to tax at that stage in their development. However, the businesses that survive beyond eight years and have the best potential for future growth and the next generation of CT will be hampered by this 25% increase from 19% to 25%. Pick pocketing from people building businesses and trying to grow is a mistake. Other companies often give lower CT %’s to SMEs. As you know SMEs can only re-invest the money they retain or use it as security and cash flow on risky new business, or to obtain greater business loans, as believe me having just your family home up as security for every advance causes sleepless nights.
I try not to misrepresent him and what his post is about or you. āAnyway, at least that gives you something to answer to, eh?ā are you concerned I donāt always agree with everything you write?
February 15, 2023
Why do we pay tax anyway?
It was started in earnest (although run up flagpole a few years earlier) during an emergency!
Napoleon was that emergency, then after the war tax was so unpopular it was removedā¦.
Until Peel reintroduced it so he could get rid of lots of import/entry duties.Free trade!!
Never went away again.
It is not value for money.
February 15, 2023
We do need to question what and why ‘things’ are taxed
February 15, 2023
Tax exists to fund Govt costs of important purchases and to encourage better behaviour, such as avoiding harm from cigarettes. However, this Govt collects far too much tax from far too many sources with crazy overcomplicated rules, and spends it recklessly. There are rarely any sensible improvements or simplification. Designing a worse tax system than we have now seems near-impossible, yet politiciansā incessant tampering succeeds in making it nearer Worldās worst.
February 16, 2023
‘to encourage better behaviour’ – is not and shouldn’t be a function of government
February 16, 2023
Tax allowances are incentives promoting good actions, such as investing in plant and machinery. Similarly tax relief is good for adding value to pensions. Better behaviour is and should be rewarded.
Tax also means heavy demand and Govt imposes fines to discourage unwanted behaviour, such as speeding, pollution & much else. Routinely, with failure, it is charged after the event as a punishment payment, with higher rates to follow.
It would be better if tax were applied only to bad things. Working is good, yet Govt charges heavy levels of tax on those who work and pays large sums to many who prefer to skive.
February 15, 2023
Culbono
“Why do we pay tax…”
Increasingly so that government can redistribute it at will, to fund more things they think people like, so that they will be liked, and get elected again.
Unfortunately the people have not yet properly understood that the Government has no money at all, it all belongs to the taxpayer who could spend it themselves, on the things that they really want, and get better value for it !
One day the majority in the Country will eventually work it out, and the alternative economy will grow, the Governments answer to that will be to do away with cash !!
February 15, 2023
The Treasury’s mindset is “how much tax can we levy” not “what level of tax is necessary” let alone “how little tax do we need to levy.”
It is blindingly obvious that if you raise Corporation Tax will deter investment but it seems the Treasury wants to achieve precisely that so that its predictions of damage to a post-Brexit economy will finally be delivered.
Unless and until there is a clear-out of Gordon Brown’s Treasury, NOTHING will change.
But that is unlikely since far too many politicians have the same mindset, including the two marionettes known as The First Lord of the Treasury and the Chancellor plus at least half of MPs in the Not-a-Conservative-Party.
February 15, 2023
Consocialists miss the obvious two offsets that in fact save the exchequer money because the participants do not use the state system, private education and private health including dentistry. They let their politics of envy get in the way of financial logic.
Whatever game is played with offsets it does not get away from the fact that the UK in all aspects is the most highly taxed country for its businesses and taxpayers since the end of WW2. Its effect is stagnation and the drift of business and talent. We desperately need a radical rethink of what government should be limited to doing in our lives and the apporopriate editing of the 20,000 page tax maze. This latter course is beyond the intellect of this government and its scribes. The former has to be replaced at the GE in 2024, and the latter as a manifesto result.
February 15, 2023
You’re correct. This is setting fire to the future, so companies invest today to relieve high rates (paying less UK tax) but take profits elsewhere at lower rates later (paying no UK tax).
February 15, 2023
Iām sure that if the PM reassures potential factory builders ( especially surely those in the health business) that their tax money is going to house our newly arrived guests in 4**** hotels they will be thrilled and build anyway.
Obviously the case has not been persuasively put.
He needs to win their hearts and minds.
February 15, 2023
The 26% / 19% = 37% calculation doesn’t take into account the RoI potential of the money kept by the company at the lower 19% corporation-tax rate so it has even more value in the company’s eyes.
February 15, 2023
Iām not sure but isnāt this very old territory?
āGold platingāthe EU edicts?
Overly keen to please teacher and never mind the good of the country.
February 15, 2023
Any recommendations as to a suitable country to emigrate to.
February 15, 2023
+1
I keep wondering that.
I can only think of Thailand.
But being a very sensible country it does not allow foreigners to buy property.
February 15, 2023
It does allow rich foreigners who can incorporate to buy property. It’s just the little people who have to sign away their rights.
‘Twas ever thus everywhere
February 15, 2023
Belize, Panama, BVI, Guernsey, Gibraltar, Cyprus?
February 16, 2023
which half of Cyprus?
February 16, 2023
The good one ā¦ the one with its passport-for-investment scheme ā¦ obviously.
February 15, 2023
Simple mathematics.
You surely do not need to learn mathematics for another two years to work out the fact that higher taxes, means less retained profit.
That higher taxes means you have less of your earned income to spend where you choose.
I would have thought our Chancellor and Prime Minister would already know that !
February 15, 2023
Tax rates will go ever higher and as supply of food and goods dwindle “Net Zero” will be seen to mean exactly that- zero quality of life and zero freedom. The Conservative party has been socialist for a long time now. Under the latest unelected loser and his universally disliked chancellor it has swung even further left. Why we don’t just cut out the middle men and get orders direct from Klaus I don’t know.
February 15, 2023
Mr Wallace was on the radio today arguing for more money for defence. Indeed we probably do need some. he denied we would run out of ammunition in days in the event of a war but in words and a tone that would allow it to be the case that we might run out in a couple of weeks. What I didn’t hear him pressed on (though I only caught 1/2 of it) was why the MoD’s procurement is so utterly incompetent. we have reportedly spent Ā£6bn on Ajax tanks which are useless and are to be abandoned. who was responsible for this? don’t we need an airline type investigation into such a shameful waste? One of the 2 great aircraft carriers, which now in effect constitute the entire navy as the rest of it must be employed to support them, doesn’t work due to bad construction by some French defence contractor. The alarming and shameful report that the RAF has turned down the best qualified potential pilots in favour of candidates who might tick diversity boxes is no longer mentioned.
I’m all in favour of more money for defence, and I’m sure we could find Ā£ billions for it simply by cutting useless and overmanned govt depts and quangos (which would itself be beneficial). But we need Mr Wallace and other ministers to be far clearer and far more rigorous in accounting for the manifold and shameful failures in procurement. A start could be to ask Dominic Cummings to step in as permanent secretary at the MoD with a focus on shaking up procurement and personnel management.
February 15, 2023
No one is listening to you or us at HQ, John.
I can’t even be bothered to respond anymore to your wishes and hopes for improvement.
You’ll all soon start to see businesses silent revolt about all this come April and it will be NOTHING to do with Brexit.
February 15, 2023
I truly believe that this Tory government is anti-business, anti-growth, anti-fossil fuels, anti-independent transport, anti-cash, anti-free speech, anti-democracy, anti-magna carta, anti-british and anti-average joe
February 15, 2023
Glen. Do you mean anti everything and everything that would benefit the UK?
February 16, 2023
YES
February 15, 2023
The point of tax is to pay for our structures to smooth and in turn realise the Countries full potential and productivity so we can move further forward together.
In other words if you want to profit as a business or and individual in the UK, contributing to its structures is the common fair way for all, tax should be seen as part of the process. However, the never ending distortions in the UKās tax systems, relies on those that canāt escape tax payments paying for the facilities consumed by those that can. Its a Government fail big time, by tinkering not Managing. The required tax pot has to be filled by someone, regardless of what they say it is never Government paying, it is your family, friends and neighbours. All offset, allowances, subsidies and so on are paid by those around you ā the recipients get to live on the hard work of others.
The tax system is used both as a political weapon and a mode of indoctrination instead of simply being a payment for our structure. Poor shabby politics.
That is why there is criticism of some big cooperation’s, they want to profit from the wealth created in the UK, but then do everything needed to avoid contributing. Its simple really, what could have been seen as taxable profits and contributed to the UK tax authorities is instead paid offshore as a cost an administration/management fee ā therefore no UK profits, just the removal of its wealth.
February 15, 2023
Quite.
The rich and corporations want to avoid and the poor don’t contribute.
Who does that leave to pay?
February 15, 2023
But there is a huge problem in Whitehall with what you suggest: it is simple and straightforward giving less scope for new regulations, and therefor less for Civil Servants to do.
It is also much easier for the Tax Payer to understand.
February 15, 2023
OFF TOPIC.
Sturgeon to stand down.
My contacts north o’the Border have been telling me for a very long time of the issues brewing but kept out of public gaze, and benefiting by gagging orders. I await some tasty morsels making headlines in the days, weeks to come. But at least she has a husband to offer support.
February 15, 2023
She will of course be replaced by another of the same mould, same motivation and intention. S
Sadly our UK government will probably, in their weakness and similar anti-England untity plans increase their settlement of Scottish demands.
February 15, 2023
Fully agree with your argument and article today SirJ
The same argument is true for the ābusiness ratesā they, the government, always give rate relief but never a rate cut. ā¦governments for the past couple of decades have fallen into a culture of maintaining high and higher taxes
February 15, 2023
Is that truly one of its objectives? – Isn’t that just another thing it pays lip service to while enacting its own agenda?
It should be plain by now that the establishment, and particularly the Treasury, are pursuing policies that will bring the UK to it’s knees.
Little by little the parameters of life are being changed against us, from food to cars, and from 15 minute cities to extended ULEZ zones.
This is all part of the great reset to take us on to the new world order.
February 15, 2023
I still havenāt heard any cabinet minister nor our government condemn the introduction of 15-minute cities and ULEZ
February 15, 2023
They know all of this, Sir John, the fifth column communists in Parliament, the civil service, the quangos, NGOs, ācharitiesā, judiciary, educational establishment and all our institutions.
They wish to bankrupt the country with pointless and unachievable CAGW/Net Zero, unnecessary lockdowns, excessive money printing, enterprise destroying high taxation, wasteful spending, exponentially increasing taxpayer funded jobs and ācharitiesā, encouraging illegal and legal immigration even to the extent of funding the ācharitiesā which take the country to court over the Rwanda plans.
February 15, 2023
Same as yesterday – ” motivation not strangulation “.
February 15, 2023
On a similar vein, there is the matter of tax relief on contributions to pension funds.
It makes sense to me to give some subsidy to savings into pension funds at the Basic rate of income tax, to support income on retirement rather than just relying on the state pension. Why, however, give this subsidy for the higher rates of tax?
Bearing in mind that one can take 25% tax-free from your pension fund, which includes the āgratuityā given to retiring public servants, most people paying Higher rate and Additional rates of tax will then have a pension on which they probably pay only Basic rate, or part at the Basic rate.
The Treasury, realizing how expensive pension tax relief was, and never knowingly taking the simple approach when a more complex way is available, introduced a restrictive life-time allowance and an annual allowance to reduce the cost. It is not, of course, the Treasury having this cost/giving this subsidy, it is actually the lower paid general taxpayer/VAT payer etc who has to cover this loss of tax. These restrictions also seem to be one of the reasons highly-paid professionals, including doctors etc are retiring early to escape the tax charges. There is also some comment that the 25% tax-free allowance may be restricted and the annual allowance raised to reduce this leaving rate, further complicating the matter.
So why not reduce the tax relief of pension contributions, just to the Basic rate across all income?
To declare my interest, I was a civil servant for 8 years, claiming 40% tax relief on my pension contributions. I am now paying (only?!) 20% tax on my pension income.
February 15, 2023
The government taxes dividends in pensions, so recoups much of “extra” tax saved by younger 40% payers. Couple that with later 55% charges on larger funds.
February 15, 2023
Another excellent article, Sir John. I won’t bore you with my usual comment about cutting the cost of Government to allow sensible tax cuts.
Both Sunak & Hunt have had time to say they will cut taxes, but the silence is deafening! So we can look forward to a steady as you go budget when it needs to be the exact opposite.
February 15, 2023
Can you believe theyāre still manifesto commitments:-
āāwe will not raise the rate of income tax, VAT or National Insuranceāā p2 and
āāAnd by cutting corporation tax from 28% to 19% we have encouraged businesses to invest and grow in the UKāā p34
February 15, 2023
“…more tax offsets, tax free allowances and temporary concessions.”
The Treasury all the rest of the bureaucracy love labour-intensive, complex ways of tackling problems. As do the consultants who also benefit from it. It’s not as if the Tax Code needs to get any bigger.
How many times have we been promised that red tape would be reduced? I see small countries that want inward foreign investment, like some of the Baltic States, pay great attention to their tax simplicity and competitiveness.
February 15, 2023
The budget deficit will not be brought under control unless the government desists from it’s wasteful spending
February 15, 2023
The decision of our taxation policy will be for the leaders of Brussels ā¦according to Lord Heseltine yesterday, the so called brexit review, will ultimately return us to the EU ā¦.and heās a conservative Lord active in the party and the House of Lords
February 15, 2023
++many
I believe that muchly landed gentry benefitted ( or benefit?) muchly from the EU.
They would love to return ( or continue remaining?).
February 15, 2023
I wonder how long it will take your beloved EU acorn, to start to demand more Euros, tax alignment from Ireland? Not long I predict.
Southern Ireland who gets away with not contributing a single 1p to Nato, why doesn’t France concentrate on that instead of looking at the UK? Why doesn’t France concentrate on other EU members who don’t pay their fair share?
February 15, 2023
The reason for such unnecessary fiddling around by the Treasury is obvious – by both taking and then giving back, they are providing themselves with a job creation scheme for Treasury officials.
It is not done out of a desire to reduce the unemployment figures, but out of a desire for the aggrandisement of their own empire: the abiding obsession of all senior civil servants.
February 15, 2023
Elsewhere in the media to day the phrase is used of āthe brutality of modern politics has taken its tollā
That’s not really the case, the refusal to do what the voters ask and is expected of politicians, is the problem. Taking up a banner and perusing a dream of personal indoctrination of the people you serve, is the same as starting a war with them.
Politicians that work with those that voted them in, get to move serenely forward and get applauded. Its simple when you work with people a common goal emerges and everyone is pulling in the same direction.
The Government in the UK is in the same boat, it refuses to do the job we pay them for, manage ā as such has gone to war with the people. It of course will cost us all massively, waste time and require a big clean out just to restart what was always and still is necessary. Tax is not management.
February 15, 2023
Home Office ā14th February 2023
Illegal Immigrants – 204
Boats – 5
February 15, 2023
+many
Obviously our politicians are extremely ā relaxedā about this.
Nice to know where our tax money goes while we freeze and cut down on ever more expensive groceries.
February 15, 2023
Sir John. I would very much like to see a tribute to Nicola Sturgeon as a politician in your diary over the next couple of days.
I would like that tribute to extol her for her political skills while showing how little the SNP achieved for their country while she was succeeding politically.
February 16, 2023
Perhaps you would list the successes? Education, Health, Ferries, Economy, Respect for the Scots – and of course being subsidised by those who can ill afford it?
February 17, 2023
By succeeding politically I meant to be feted by the media as a revolutionary progressive while remaining relatively popular as a leader and doing so with the agenda of an authoritarian bigot.
February 17, 2023
Much like Jacinda Ahern and The Canadian chap.