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UK will not be cut

UK Uncut is the fast-growing organisation behind the recent protests against tax-dodging high street stores. It would be nice if they got the message that the way to stop tax avoidance is to shift from existing taxes to LVT. It is hard not to feel envious at their viral expansion, but then their message is simpler to grasp than ours is.

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Borrowing from daddy to stoke up the land market

House builder Barratt has teamed up with Hitachi Capital to offer £50,000 loans to parents wanting to buy Barratt homes for their children. Barratt’s tie-up with the UK financial services arm of the Japanese conglomerate will see the creation of a £1bn fund that will offer 12-year unsecured loans for parents to use as part of the deposit for their child’s new home.

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UK Pound tumbles against Zimbabwe Dollar

The UK pound has not done well against most currencies, even including the shaky Euro, but who realises that for the past two months it has been tumbling down against the Zimbabwe Dollar? Should Osborne and Mervyn King be asking for advice from Harare?

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Benefit cheats

Benefit cheats exploit the system and rob the community. What they do is dishonest, criminal and a punishable offence. Benefit cheats obtain public funds to which they are not entitled. Is this surprising? The system is wide open to abuse. What else can we expect? In a recent case, a 51-year-old woman claimed over £30,000 for 9 years and was discovered to have bank accounts in three countries, a...

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Veteran Observer journalist misses point yet again

Writing in today’s Observer, Will Hutton talks about the need to reform the banks. It is strange how he and so many of his colleagues succeed in missing the point so precisely. Hutton is just talking about effects. Banks create credit for property purchase, of which most of that value is land purchase. The loan is secured on the land. The lenders then charge interest on the money they have...

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Mirrless Review published

The final report of the Mirrlees Committee, sponsored by the Institute of Fiscal Studies, has now been published. It makes wide-ranging proposals to simplify the UK’s tax system: income tax and National Insurance should be merged, with an alignment of the way the employed, self employed, and limited company owners are taxed. The Review, chaired by Sir James Mirrlees, argues that a coherent...

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Joined-up government – not

Any hope of joined-up government seems to be receding ever more quickly in the wake of a torrent of ill-thought-out policies. Last night I heard a story about a man with an ASBO who was called for a health test to try to get him off his benefits and into – what, exactly? The trouble is that attending the test will put him in breach of his ASBO as he is not allowed to be in that part of town...

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Child benefit row erupts

We note that the Chancellor’s proposals for means-testing of child benefit are floundering on the practicalities of the scheme. We are not keen on child benefit in principle, as we take the view that people should not require these hand-outs. On the whole, they give with the right hand money that has been taken away with the left, all at considerable expense. But having put the system in place,...

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Housing benefit row

The inevitable row has erupted over the government’s proposal to restrict housing benefit. The argument is that poor people will be forced out of areas where rents are high. At the same time, a report from the Audit Commission today noted that 1,600 homes occupied by unauthorised tenants have been recovered by councils, with a replacement cost of approximately £240 million.  

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