"…the IEA is always challenging and thought-provoking." – David Laws MP
The treatment of inflation in the budget is reprehensible:a. Not indexing the ‘gains’ for capital gains tax purposes. This is really just fraud. And justifying it on grounds of ’simplicity’ is disingenuous.b. Freezing income tax thresholds in money terms (i.e. stealthily reducing them in real terms). Rooker, Wise, Lawson, who called for automatic indexation, should not be forgotten. c. Shifting from RPI to CPI for benefits, tax credits and public service pensions. By 2014/15 this apparently ’saves’ £5.8 billion (according to Table 2.1). This is the kind of trick a banana republic might play … unworthy of a British government.
The shift to CPI for benefit increments is also noteworthy because this measure bears little relation to the living costs of those on JSA, Income Support etc. Around half their expenditure (ignoring housing costs – typically covered by Housing Benefit) is likely to be on utility bills which make up a relatively small part of the CPI. Perhaps a more representative index could have been introduced.
Invest in the IEA. We are the catalyst for changing consensus and influencing public debate.
Thank you for
2 Lord North Street, Westminster, London SW1P 3LB
Tel: 020 7799 8900 Fax: 020 7799 2137 Email: email@example.com
Registered in England 755502, Charity No. CC/235 351, Limited by Guarantee
Site by Deeson