Quite a lot of chat about the tax rises in yesterday budget which clearly are going to affect many people especially freelancers / self employed. My take is that this is really challenging but the Government still does not have sufficient revenue for its spend. We still have a deficit and so tax rises are not exactly a surprise. Of course that hurts people too and that obviously not good! More broadly the situation is exacerbated by technological/structural changes aligned to an ever growing need for state spend, whether that be NHS, an ageing population and social care. Lets for once park Brexit but clearly not a plus financially, at least for the next 5 and more likely 10 years.
UK still has (in term of our taxes) a 20th Century linear system for a digital world. Not fit for purpose – Hence no surprise it does not work particularly well.
Furthermore we duck tough calls. Whether it is Trident renewal – is that really the best use of our resources when conventional military force is so depleted – could we get better bang for buck by increased funding for navy, army and air force? I’d prefer we use a significant proportion of Trident money for updating our regular military and on homeland security. What about our insistence in being pretty much the biggest GDP% foreign aid donor in the world – is Cameron/Obsborne’s policy so smart or are we still all paying for their Tory rebranding exercise? Why is 0.7% the magic number – is it not itself arbitrary?
Not sure how many people are in favour of the UK being no 1 in the planet amongst major economies for foreign aid donation? Perhaps some people are really proud of this use of their tax money! So we spend in ways that not everyone understands and I guess the revenue has to come from somewhere, but totally understand how people get upset with these changes.