Premier football – British jobs for foreign workers

There are rumours that the great football being played by Premier league teams at the top of that division may become a thing of the past. People fear that the new higher rate of tax – Brown’s spite tax – may start to deter foreign stars from coming to Britian to earn their mega bucks and display their skills.

As Labour passes from the era of Stealth taxes to the era of Spite taxes, we need to ask why?

Is the idea of the spite tax to create a scorched earth policy? Do Mr Brown and Mr Balls dream of being able to say in opposition that Premier League football is not what is was in their day under a future Conservative government?

Or is this at last the implementation of the PM’s policy of British jobs for British workers?

This entry was posted in Blog. Bookmark the permalink. Both comments and trackbacks are currently closed.


  1. Simon D
    Posted May 6, 2009 at 6:52 am | Permalink

    I can’t get worked up about this. The move has wide popular support because it is seen as taxing the kind of rich spivs who have wrecked to economy. Conservatives should not go there. They are playing into New Labour’s hands.

    The main challenge for the Conservatives is that (1) they know it would be in the interests of UK Plc to reduce direct taxation and (2) it has to be done in a way which is perceived to be fair. However, the Labour Party and its clients in the media have created a climate of opinion where any mention of tax cuts connotes cuts in services. Vote Conservative, vote tax cuts, extend the waiting time for your hip operation. Brain surgeons will be moonlighting as office cleaners and social workers stacking shelves in supermarkets if nasty Tory cuts are implemented.

    The Conservatives will need to sort out this paradox for their election campaign and send clear messages to the public on the subject.

    • Robert
      Posted May 6, 2009 at 8:01 pm | Permalink

      Wrong. Rich spivs did not wreck the economy. It was wrecked by foolish government policy. Steer clear of “wide popular support” when you formulate your view – beware the tyranny of the masses.

  2. alan jutson
    Posted May 6, 2009 at 7:10 am | Permalink

    It may all come to an end irrespective of the 50p tax.
    I am given to understand (press reports) that a particular TV company who have bought the TV rights to a certain number of games is now having problems paying for them.
    If TV revenue falls, then the game, and many Clubs will be in serious financial trouble.
    The 50 pence tax may then be the straw that broke the camels back.
    The high cost of admission is now having some effect as well.

  3. Robin
    Posted May 6, 2009 at 7:48 am | Permalink

    Despite the banks collapsing and us having to pay 10p extra tax and work an extra 5 years to pay for Gordon’s economic mess I still think the biggest threat to the UK standard of living is globalisation. Now I’m not saying there is anything “wrong” with globalisation – and specifically the off-shoring of UK services – I think the term “natural” would best be used to describe the process of job distribution. I think outsourcing is a bigger threat to jobs thatn taxes.

    Having said that …

    I can see that the 10% additional tax on £150K is designed to hit high earners rather than workers involved in the production process. But this will simply mean high earners will ask for more money to create the same net income. High earners have a much higher leverage than low earners – they are closer to the salary setting process and usyally control sales and revenue in the company. If they threaten to walk then the company will usually pay the extra money. High earners rate of salary increase has been higher than lower earners for years, the 50% tax will continue or increase that trend. This of course means salary being taken away from lower earners. I don’t think that taxes will fall but I do think that lower earners salaries will increae at a lower rate.

  4. mikestallard
    Posted May 6, 2009 at 8:42 am | Permalink

    Nicely put!
    Down here at the bottom of the pile, there is a lot of anger about fat cats – neatly exploited by the gutter press. How popular it would be if the government made them pay up for all the crisis, leaving the other people alone!
    Of course, the sums don’t add up.
    But this doesn’t matter because:
    a. Sums are hard work.
    b. Politics is boring anyway.

    PS. Football, as everyone knows, is nothing to do with politics.

  5. Robert
    Posted May 6, 2009 at 8:57 am | Permalink

    Hooray for footballers who can earn £5 million a year. Cut tax rates and we’ll get more of them. Raise tax rates and we’ll have fewer.

  6. yellowbelly
    Posted May 6, 2009 at 9:09 am | Permalink

    John, most of the top foreign players are either paid a “net of tax” figure and/ or have their earnings paid to an offshore management company. They don’t pay 40% tax on their earnings, they certainly wont be paying 50%.

  7. Monoi
    Posted May 6, 2009 at 9:37 am | Permalink

    The important question really is whether an incoming conservative government would reverse those spite and stealth taxes.

    I’m not convinced it will.

    • Robert
      Posted May 6, 2009 at 7:55 pm | Permalink

      Correct. It’s time for opposition parties to be clear. If the Conservatives believe in free markets then they should say unequivocally that they will cut taxes and public spending. There should be no doubt in May 2010.

  8. Alan Phillips
    Posted May 6, 2009 at 2:32 pm | Permalink

    Yellow belly is correct, the football agents cottoned onto this a while back. Having seen Manchester United destroy Arsenal lastnight, its good to know that players such as a Rooney, Giggs, Fletcher, Ferdinand and Carrick can still hold a candle for UK players as able to do the job against our European friends, shame Gordon can’t do the same.

    Ig Gordon was to play football he’d be a winger, as he doesn’t has a plan for anything, he just wings it….

  9. John, Wrexham
    Posted May 10, 2009 at 11:57 pm | Permalink

    Very few entrepreneurs will be affected by the income tax hike as surely they’ll be paying themselves dividends. however, some of the chief quangocrats on top salaries might be moaning as paying PAYE, they’ll find it harder to avoid the increase.

    as for the effect on the premier league, every cloud has a silver lining!! if there is only one group of people who prove that the state spending your money instead of you is better, it must be premier league footballers. i bet the sports car manufacturers aren’t happy though!

    the conservatives should concentrate on a) raising the pathetically low personal allowance to the equivalent of the annual minimum wage b) extending to everyone tax free income ie even the rich should have a personal allowance c) everyone should be allowed to save out of their gross income in relation to what they pay in d) then start cutting the 40% rate to 35% by the end of the first parliament and e) as for people earning over £150,000 , there’s been a lot of tosh written about how these people are only motivated by money in fact it is people earning a lot less who are motivated by money because it makes more of difference to your life the poorer you are.

    the best entrepreneurs are motivated by the desire to be successful, the pioneers, and at the top of the tree in their field the big earners who aren’t motivated by such ideas and are just obsessed about money won’t be missed.

  • About John Redwood

    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

  • John’s Books

  • Email Alerts

    You can sign up to receive John's blog posts by e-mail by entering your e-mail address in the box below.

    Enter your email address:

    Delivered by FeedBurner

    The e-mail service is powered by Google's FeedBurner service. Your information is not shared.

  • Map of Visitors

    Locations of visitors to this page