Policies

Other Issues: Alternative Revenue Streams

Posted on September 7th, 2016.

Alternative Revenue Streams This is a section on creating public income to offset tax. It is not about selling assets or service privatisation but creating alternative revenue streams to tax and duties. Up to now public running of services or industries has been to preserve an ailing industry or to offer a service. Today, many […]

The Killer Reason for Political Change

Posted on August 17th, 2016.

Sir Anthony Seldon:  “We are sleepwalking into the biggest potential disaster of modern times”. The case for political change If the failure of existing political policies are not severe enough then the most compelling reason for change is that neither the existing taxes, nor the benefits structure, can survive the digital revolution. When you add […]

Policy Summary

Posted on August 10th, 2016.

Government Electoral reform with Direct Party and Representative Voting replacing First Past the Post for MPs House of Lords to be substantially reformed 411 councils replaced with 9 regional operations run by the individual services reporting to regulators Removal of political influence in the running of public services Members of Parliament to have outside earning […]

New Taxes and Duties

Posted on August 9th, 2016.

Among the major changes put forward by Forward Thinking, a number of new taxes and duties would be applied. Land Value Tax Land Value Tax is a method of raising public revenue through an annual charge on the rental value of land. It is charged to owners of land, not tenants. It is not strictly […]

Tax Credits and Other Benefits

Posted on August 9th, 2016.

The Role of Tax Credits and Other Benefits The 1997-2010 Labour Government oversaw a move to tax credits to provide support replacing the benefit system. Since April 2003, there have been two tax credits running: Child Tax Credit and Working Tax Credit. Both are based on family circumstances. This is opposite to tax that is […]

Other Taxes and Royalties

Posted on August 9th, 2016.

The Role of Other Taxes and Royalties Other taxes and royalties raised £29.4 billion in 2014/15 equivalent to 4.9% of total tax, rising to £30.7 billion in 2015/16 again representing 4.9% of total tax. There are various other taxes and royalties. Many of these are independently small in their contribution to public finances. Planning Permissions […]

Council Tax

Posted on August 9th, 2016.

The Role of Council Tax Council Tax raised £27.6 billion in 2014/15 representing 4.6% of total tax. In 2015/16 Council Tax raised £28.4 billion equivalent to 4.5% of total tax. Revenues from the Council Tax are higher than the Business Rates. Proportional Importance of Council Tax, 2014-15 (% of Total) Source:  Office for National Statistics On 1 […]

Bank Levy

Posted on August 9th, 2016.

The Role of the Bank Levy In 2014/15 the Bank Levy raised £2.7 billion, equivalent to 0.4% of total tax. Bank Levy revenue increased in 2015/16 to £3.7 billion, representing 0.6% of total tax. The Bank Levy was introduced after the financial crisis as a way of forcing banks to contribute more to the UK […]

Business Rates

Posted on August 9th, 2016.

The Role of Business Rates Business Rates generated £26.9 billion in 2014/15 representing 4.4% of total tax. Business Rates revenue rose in 2015/16 to £28 billion, equivalent to 4.5% of total tax. Business Rates are taxes on nonresidential properties, including shops, offices, warehouses and factories. Companies pay a proportion of the officially estimated market rent […]

Petroleum Revenue Tax

Posted on August 9th, 2016.

The Role of Petroleum Revenue Tax Petroleum Revenue Tax raised £1.2 billion in 2014/15 representing 0.2% of total tax, but raised virtually nothing in 2015/16. The current North Sea tax regime has three layers of tax: Petroleum Revenue Tax (PRT), Corporation Tax and a supplementary charge. All of these taxes are based on profits, but […]

Corporation Tax

Posted on August 9th, 2016.

The Role of Corporation Tax Corporation Tax generated £40.5 billion in 2014/15 representing 6.7% of total tax. It increased to £42.3 billion in 2015/16 again representing 6.7% of total tax. Corporation Tax is payable on the profits of companies, public corporations and unincorporated associations located in the UK. The profit on which Corporation Tax is […]

Stamp Duty

Posted on August 9th, 2016.

The main stamp duties are payable on share and bond (securities) transactions and on conveyances and transfers of land and property. They are so named because, historically, stamps on documents, following their presentation to the Stamp Office, marked payment. Nowadays, most transactions do not need a document to be stamped. Since 1986, securities transactions for […]

Inheritance Tax

Posted on August 9th, 2016.

The Role of Inheritance Tax Inheritance Tax generated £3.9 billion in 2014/15 representing 0.6% of total tax. It rose to £4.2 billion in 2015/16 equivalent to 0.7% of total tax. Inheritance Tax was introduced in 1986 as a replacement for capital transfer tax. The tax applies to transfers of wealth on or shortly before death […]

Capital Gains Tax

Posted on August 9th, 2016.

The Role of Capital Gains Tax Capital Gains Tax raised £5.4 billion in 2014/15 representing 0.9% of total tax. Receipts increased to £6.4 billion in 2015/16 equivalent to 1% of total tax. Capital gains are profits from the sale of a capital asset, such as shares of corporate stock, a business, a parcel of land, […]

Customs Duties

Posted on August 9th, 2016.

The Role of Customs Duties Customs Duties amounted to £2.8 billion in 2014/15 representing 0.4% of total tax income. Income rose to £3 billion in 2015/16 and the importance to total tax rose to 0.5%. Import duties are currently payable when importing goods into the UK from outside the EU whether by a private individual […]

Aggregates Levy

Posted on August 9th, 2016.

The role of the Aggregates Levy The Aggregates Levy raised £0.3 billion in 2014/15 and 2015/16 and as such represented an insignificant amount of the total tax. The Aggregates Levy is a tax on the commercial exploitation of rock, sand and gravel (such as their removal from the originating site or their use in construction). […]

Climate Change Levy

Posted on August 9th, 2016.

The Role of Climate Change Levy The Climate Change Levy generated £2 billion in 2014/15 representing 0.3% of total tax. Revenues increased to £2.3 billion in 2015/16 equivalent to 0.4% of total tax. The Climate Change Levy applies to industrial and commercial use of electricity, coal, natural gas and liquefied petroleum gas. The tax rate […]

Landfill Tax

Posted on August 9th, 2016.

The Role of Landfill Tax In 2014/15 Landfill Tax generated £1.3 billion representing 0.2% of total tax. Revenues fell to £1 billion in 2015/16 again representing 0.2% of total tax. Charges for Landfill Tax have two rates: a lower rate of £2.50 a tonne for disposal to landfill of inactive waste (waste that does not […]

Insurance Premium Tax

Posted on August 9th, 2016.

The Role of Insurance Premium Tax In 2014/15 Insurance Premium Tax raised £3.2 billion, equivalent to 0.5% of total tax. This rose to £3.5 billion in 2015/16 representing 0.6% of total tax. Insurance Premium Tax came into effect in October 1994 as a tax on general insurance premiums. It is a proxy for VAT which […]

Duties

Posted on August 9th, 2016.

The Role of Duties Excise duties are levied on three major types of goods: alcoholic drinks, tobacco and road fuel. Increasing the price of these products moderates consumer behaviours. Duties are applied at a flat cash rate, so they need to be increased with inflation each year to keep their real value. A simple percentage […]

VAT

Posted on August 9th, 2016.

The Role of VAT VAT accounted for 18.3% of total tax in 2014/15, generating £110.7 billion. This rose to £115.9 billion in 2015/16 equivalent to 18.5% of total taxes. VAT is in fact an EU originated tax and exiting the EU offers the UK the opportunity to abolish or reduce the tax. Under EU legislation […]

National Insurance

Posted on August 9th, 2016.

The Role of National Insurance National insurance is an important contributor to public funds. In 2014/15 it generated £110.0 billion (18.2% of total tax income), rising to £114.8 billion in 2015/16, equivalent to 18.3% of total tax income. Proportional Importance of National Insurance, 2014-15 (% of Total) Source:  Office for National Statistics This is the income area […]

Income Tax

Posted on August 8th, 2016.

The Role of Income Tax Income Tax is the largest single source of Government income. It generated £166.5 billion (27.5% of total tax income) in 2014/15 rising to £170.2 billion in 2015/16, equivalent to 27.1% of total tax income. Proportional Importance of Income Tax, 2014-15 (% of Total) Source:  Office for National Statistics Income Tax measured against […]

Taxes and Duties

Posted on August 8th, 2016.

Clement Attlee:  “Charity is a cold grey loveless thing. If a rich man wants to help the poor, he should pay his taxes gladly, not dole out money at a whim”. Tax is low in the UK. The UK has only the 14th highest taxes in Europe as a proportion of GDP. They are some […]

Other Issues: True Living Wage

Posted on August 8th, 2016.

True Living Wage Forward Thinking advocates the development of a True Living Wage. UK tax credits go back to 1795 when a means-tested sliding scale of wages supplements was introduced to reflect the number of children and the price of bread. Seemingly little has changed in 220 years. The idea of the state supporting workers […]

Other Issues: Tax Advisers

Posted on August 8th, 2016.

Tax Advisers Simplifying taxes will remove opportunities for tax evasion, but there is an entire industry focussing on giving advice on how to avoid taxes. Forward Thinking believes that in cases of tax evasion both the adviser and the evader should be prosecuted. Each party should then repay the entire evasion cost. This would have […]

Other Issues: Regulation

Posted on August 8th, 2016.

Regulation Forward Thinking believes strong and effective control is necessary for various services and industries. Regulators would oversee all regionally run public services. These services include all those inherited from Local Government. They will run alongside existing regulators. The UK already has many regulators, some of which have proved to be more effective than others. […]

Other Issues: Rented Properties

Posted on August 8th, 2016.

Rented Properties Forward Thinking will introduce measures to guarantee standards of rented accommodation. Renting out property would be conditional on use of rental agencies. Agents would be legally responsible for making sure all properties meet minimum conditions, and have regular maintenance checks. It will also be compulsory for rented accommodation to have window locks, internal […]

Other Issues: Renewable Energy, Climate Change and Power

Posted on August 8th, 2016.

Renewable Energy, Climate Change and Power The UK is strongly lagging Europe in its use of renewable energy despite the fact that its use is blamed for the high comparable costs of energy in the UK: International Benchmarks of the Share of Renewable Energy, 2014 (% of Final Energy Consumption) Source:  Eurostat Frequent policy changes between governments […]

Other Issues: Public Bodies

Posted on August 8th, 2016.

Public Bodies The Government has reduced the number of public bodies in recent years through the 2010 Public Bodies Reform Programme. There needs to be continued emphasis on the efficiency of spending on public bodies. As at 2014 there were 450 non-departmental public bodies, of which 149 were advisory, 154 were executive bodies, and there […]

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