Executive summary Wealth taxes are levied on personal capital, the stock of what people have versus the flow of their income or consumption. Within that broader category, net wealth taxes (annual charges on people’s net wealth) have been tried in many economies, but most have been scrapped. They are inefficient,... Read more...
The public sector has expanded steadily over recent years, with headcount currently at a record high. Given that public sector workers are paid more than their private sector counterparts and receive more generous pension benefits,[1],[2] this imposes a significant burden on the public finances. Yet the growth of the public... Read more...
The government spends approximately £22 billion a year to fund each cohort of undergraduates in England.[1] This consists of around £20 billion in tuition fee and maintenance loans, only 65 per cent of which is expected to be repaid in full,[2] as well as another £1 billion in teaching grants.[3]... Read more...
Local authorities own a wide range of non-residential properties, from shops and warehouses to schools and libraries. A 2020 report by the National Audit Office (NAO) found that this trend has grown, with local authorities spending £6.6 billion on commercial property from 2016-17 to 2018-19, 14.4 times more than the... Read more...
Overview: At 53p a litre, the UK has the highest duty on diesel and the ninth highest duty on petrol compared with EU member states.[1] This is higher than Belgium, over 23 per cent more than Spain, and almost double that paid by motorists in Malta. If the UK does... Read more...
Having promised not to raise taxes on “working people’’,[1] the government is widely expected to raise taxes on higher earners to pay for increased public spending. This comes as the UK is already set to lose more than 500,000, or 17 per cent, of its millionaires by 2028, one of... Read more...
The chancellor is set to present her budget for the next financial year in October.[1] Much attention will be paid to the spending and taxation changes announced, but alongside this, figures will be released by the Office for Budget Responsibility revealing the state of the public finances and the outlook... Read more...
Foreword For decades, successive governments have paid lip-service to the importance of keeping a handle on the public finances. Just as their constituents have to carefully manage their own budgets, monitoring carefully what comes in and how much they are spending, politicians know that they too are expected to treat... Read more...
Overview: At £2.35 per bottle of wine, the UK has the third highest wine duty of any country when compared with EU member states. 15 EU countries, in comparison, have no wine duty. Of the countries that charge alcohol duty on wine, France has the lowest at £0.03 per bottle.... Read more...
Under the current council tax system, individuals who live on their own receive a 25 per cent discount on their council tax bill.[1] This is applied to the total bill, after any precepts.[2] The discount also applies to households where all other members bar one are ‘disregarded’ – this includes... Read more...
In July 2024, the chancellor confirmed that the government would approve pay uplifts averaging 5.5 per cent for public sector workers.[1] This is more than double the rate of inflation, which was 2.3 per cent from April 2023 to April 2024,[2] and follows previous pay awards of five to seven... Read more...
One of the most significant services local authorities perform, and residents expect, is the collection of waste. However, the method and the complexity of the way that waste is collected differs from authority to authority. UK councils are required to run a service which collects recycling and garden waste separate... Read more...
Introduction In August 2023, the TaxPayers’ Alliance produced a research paper examining the growth of the civil service between 2016 and 2023. [1] It found that the number of civil servants grew by over 100,000 during that period, and that expansion had been top-heavy, London-centric, and tilted away from operational... Read more...
Debt interest is the cost the government pays on its borrowing. It mostly comprises interest paid on government bonds, which are financial products sold by the government to raise money. As public sector net debt continues to grow, reaching a record high of nearly £2.7 trillion in 2023-24,[1] spending on... Read more...
This report analyses the pension prospects of new entrants into UK employment. These pensions are usually referred to as occupational pensions. The study contrasts the value of pension income an employee is likely to receive at the end of their career, from both the private and public sector.[1],[2] The comparisons... Read more...
On 1 April 2024, the BBC TV licence fee increased by £10.50 to £169.50.[1] This represents a 6.6 per cent increase following a two-year freeze since 2021. Unlike other media companies that rely on audiences viewing their content and advertising for revenue, the BBC is funded by the TV licence... Read more...
The TaxPayers' Alliance believes that wherever public money is spent, there should be an expectation of transparency and accountability from the body responsible for spending it on behalf of taxpayers. This includes remuneration for senior public officials. This principle applies to devolved administrations as much as it does to any... Read more...
Spending on the coronavirus pandemic in the UK totalled £376 billion from February 2020 to 31 March 2022 according to the National Audit Office,[1] a figure so large it could cover the cost of bailing out the banks in 2007-09 over 16 times.[2] This cements the pandemic as the most... Read more...
Following the Trade Union Act 2016, public sector organisations have been required to publish information on facility time for trade union representatives. Facility time is when an employee takes time off from their normal role to attend to union matters.[1] Public sector employees who are trade union representatives are entitled... Read more...
Overview: At £0.60 per pint at five per cent abv, the UK has the second highest beer duty of any country when compared with EU member states. This is double Slovenia’s; almost quadruple Denmark’s; and more than any EU country England or Scotland can play in the Euro 2024 football... Read more...
Individual Savings Accounts (ISAs) are tax free savings accounts which allow individuals to save a maximum of £20,000 per year. Currently, ISAs have no upper savings limit. Under a proposed change, there would be an upper limit of £100,000 capping the amount which could be saved without being taxed and... Read more...
Museums, galleries and libraries are often publicly owned and under the control of their local authority. This means that local authorities are in possession of significant amounts of art. This can include artwork of a substantial value. But local authorities’ art ownership is not restricted to libraries and museums. Many... Read more...
Key findings The cost of the Covid Inquiry is projected to be over £196 million. The cost per day is estimated to be £136,907. The formal establishment of the Covid Inquiry was on 28 June 2022.[1] Witnesses are expected to conclude giving evidence in June 2026.[2] The costs incurred by... Read more...
The Office for Budget Responsibility releases monthly data compiling figures on the public finances. Analysis of 74 years of parliamentary terms and tax burden data up to 2024-25 in the April 2024 release[1] shows that the current parliament is set to have raised the tax burden more than any other... Read more...