National Insurance Hike: broken promise and broken policy

In response to the announcement of the Government’s health and social care levy, Adam Smith Institute’s Head of Government Affairs John Macdonald said:

“Today’s announcement marks a historic betrayal from a supposedly Conservative Government that promised to not raise taxes.

“It’s morally bankrupt to ask poorer workers to bailout millionaire property owners. This is a kick in the teeth for all the young working people of this country who have already been hard done by the pandemic. 

“And it risks bankrupting Brits financially, too. It is disastrous to put a tax on employment just as we begin to recover from a historically large recession.

“Throwing more money into a broken social care system will not fix the fundamental problems. We need a serious discussion about how to stimulate private-sector investment and personal responsibility, not simply more cash and state involvement.”

Notes to editors: 

For further comments or to arrange an interview, contact our press line, john@adamsmith.org | 07584667326

The Adam Smith Institute is a free market, neoliberal think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Stay with markets, protect the environment, save lives

Nuclear energy, carbon taxes and clean free trade key to achieving UK’s environmental goals

• Markets not socialist economies must be embraced to solve climate change

• A renewable-only energy grid would cost £2.9 trillion in backup battery capacity, 135% of the UK’s annual economy — nuclear energy is key to clean, affordable power

• Carbon taxes, not subsidies, regulations and bans, can solve climate change

• Post-Brexit Britain risks becoming rule taker in environmental trade and falling behind in  technology unless it reduces costs and barriers 

In the run-up to the UK hosting the COP26 climate change conference, a new report from the Adam Smith Institute (ASI) and British Conservation Alliance (BCA) argues that free markets must play a central role in addressing environmental challenges.

The ASI and BCA propose three key market-based policies to help achieve the UK’s environmental goals: embracing nuclear energy, implementing a border-adjusted carbon tax and practicing clean free trade.

Nuclear

Nuclear power represents a safe, cost-effective, efficient, and emission-free means of energy production that can address key issues with the UK’s energy grid. Existing renewable options— solar and wind power—remain hampered by lack of storage capacity and grid inertia generation. 

With reforms to the way we finance new nuclear plants, the UK could more effectively harness nuclear power to meet its Net Zero by 2050 goal.

Border adjusted carbon tax

Carbon taxes enjoy strong support from economists across the political spectrum as an effective means of tackling pollution. They force polluters to shoulder the cost of environmentally damaging production and provide a strong incentive to innovate towards low-carbon alternatives.

Rather than the government picking winners and losers through subsidies, the UK should use border-adjusted carbon taxes to ensure a level playing field. At the same time, it must lower more damaging taxes such as corporation or income tax and explore carbon dividend payments to ensure Brits are not left worse off.

Clean free trade

As the Government strikes new post-Brexit trade deals, they also have the opportunity to become a global leader in clean free trade by abolishing tariffs and quotas on all goods that the OECD designates as having environmental significance and seeking membership of pacts such as the Agreement on Climate Change, Trade and Sustainability (ACCTS).

The report also examines the poor environmental record of state-led, socialist economic models, finding that greater government control of the economy leads to overexploitation of resources and more environmentally damaging forms of production.

By contrast, market environmentalism is a proven alternative to radical ‘degrowth’ proposals that would impoverish Brits and millions of the world’s poorest.

Free markets reward the innovations that help us produce more with less, protect valuable land through strong property rights, and most importantly create the prosperity that gives us the means and motive to improve our environment.

Connor Tomlinson, report author and Policy Director for the British Conservation Alliance said:

“As the government’s policy purview turns to post-pandemic life, this paper demonstrates the benefits of taking a market-led approach to solve environmental issues. It is my hope that this paper contributes to policies which meet the government’s net zero emissions target of 2050 without unduly burdening British taxpayers. Market environmentalist initiatives deliver practical solutions to limiting our carbon footprint while simultaneously further improving the living standards across the globe.

“This practical policy framework should provide incentives for government and the private sector to make changes which ensure a cleaner, freer future.”

Matthew Lesh, head of research at the Adam Smith Institute said:

“Nitpicky regulations and banning the likes of gas boilers and petrol cars are the policy tools of the top-down socialist. Climate change is a real problem but will not be solved by politicians picking winners. We need a market-centric approach that emphasises innovation and properly costing externalities. 

“This paper is calling for a reset in the way the governments of the United Kingdom, both central and devolved, think about the environment. It’s not about throwing away free market principles, it’s about using the power of markets to achieve environmental goals.

-ENDS- 

Notes to editors:  

For further comments or to arrange an interview, contact John Macdonald, Head of Government Affairs, john@adamsmith.org | 07584 667326.

The report ‘It’s Easy Being Green: Embracing Nuclear Energy, a Border-Adjusted Carbon Tax, and Clean Free Trade’ will be live on the Adam Smith Institute website from TUESDAY, 31 AUGUST AT 10.00PM and is available here in advance.

The Adam Smith Institute is a free market, neoliberal think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Pingdemic hits 6.2 million people since May

The Adam Smith Institute estimates 6.2 million people have been asked to isolate by app or contacted by Test and Trace since the start of May. 

• The number of people asked to self-isolate in the last week is 1.7 million (14-21 July) across the entire United Kingdom, up from 1.2 million in the previous week (7-14 July).

• 6.2 million people have been contacted by the app or test and trace and asked to isolate since the start of May.

• The ‘Pingdemic’ has resulted in about a 15% reduction in people using the app between 7 and 14 July. No doubt many fewer again today. This means about 105k fewer notifications then there would have otherwise been between 7 and 14 May.

• Looking forward, we can project about 2.1 million people to be asked to isolate next week based on current case growth rate.

• Each case is leading to 5.09 people being 'pinged'.

Matthew Lesh, Head of Research at the Adam Smith Institute, said:

“The 'Pingdemic' is causing substantial financial distress and threatening the viability of thousands of businesses. Supermarket shelves are empty, bins not being picked up and factories being shut down. “

“Ten days of self-isolation for people who have been fully vaccinated is totally farcical. There should be reduced requirements so people can get back to work and their lives as quickly as possible.”

Notes to editors:

For further comments or to arrange an interview, contact our press line, info@adamsmith.org | 07584778207

The Adam Smith Institute is a free market, neoliberal think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

National insurance hike: a crushing betrayal and attack on younger and poorer

In response reports suggesting the Government will increase national insurance to fund a social care expansion, the ASI’s Head of Government Affairs John Macdonald said:

A national insurance hike would be a crushing betrayal of millions of Tory voters. It is an unfair attack on younger and poorer hard working Brits. Hiking taxes will prolong Covid economic suffering by destroying jobs and crushing businesses — which could ultimately mean less tax revenue for public services. 

Throwing money at social care will do little to solve the fundamental, structural issues. We need more private sector investment and a new model of insurance, not throwing fuel on a dumpster fire. 

The state has grown large enough over the last two years. If anything, a Conservative Government should be trying to abolish national insurance to allow people to keep more of their earnings and speed up the post-Covid recovery. 

Notes to editors:

For further comments or to arrange an interview, contact Matt Kilcoyne, matt@adamsmith.org | 07584778207

The Adam Smith Institute is a free market, neoliberal think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Boris Joins 1.73 Million Isolating In Pingdemic

The Adam Smith Institute estimates 1.73 million people are currently isolating across the UK due after being pinged by app or contacted by Test and Trace as Boris Johnson u-turns on isolating

• 1.73 million people currently isolating after being pinged by Matthew Hancock’s NHS app or contacted by Test and Trace

• 5.8 million people forced to isolate since start of May

• If the Government does not change approach, the weekly isolation figure could increase to 5.2 million people by mid-August

Adam Smith Institute analysis projects 1.73 million people are currently isolating after being pinged by the app or contacted by a test and trace service across England, Wales, Scotland and Northern Ireland.

This comes as Prime Minister Boris Johnson and Chancellor Rishi Sunak have been forced to isolate after Health Secretary Sajid Javid tested positive for Covid-19. This is despite both others being double jabbed, less likely to get the virus and highly unlikely to suffer a serious bout of Covid-19.

ASI analysis has found that 5.8 million people have been forced to isolate since the start of May. The ASI is projecting that as many as 5.2 million people could be forced to isolate by the app and test and trace by mid-August, based on the current case trajectory.

The pingdemic has resulted in thousands of businesses shutting their doors and reducing operations, due to large numbers of staff having to isolate. The lost revenue just as the Treasury is taking away Covid-19 support programs risks the closure of many businesses and the needless transformation of a viral risk from Covid-19 into a credit risk across the economy. 

Office for National Statistics figures suggest one quarter of isolators face financial hardship. This means fully vaccinated individuals are being forced to decide between a real risk of lost livelihood and a much lower risk of having or passing along the virus. 

The ASI is calling on the Government to take a risk-based approach to isolation, including reduced requirements for fully vaccinated individuals and those who have not had substantial exposure to an infected individual. 

Matthew Kilcoyne, Deputy Director at the Adam Smith Institute, says: 

“Boris Johnson is just one of millions who are being forced to isolate, despite being double vaccinated. The Prime Minister will carry on working and getting paid, but millions don’t have the luxury of working from home or having flexible shifts. 

“NHS app and test and trace induced isolation is causing substantial financial distress and threatening the viability of thousands of businesses, as large numbers of staff are forced to isolate. Freedom Day will mean quite the opposite for 1.7m currently locked away and the millions more over the coming weeks who will be told to isolate despite posing little risk to others.”

Note to editors:

For further comments or to arrange an interview, contact Matt Kilcoyne: matt@adamsmith.org | 07584778207.

The Adam Smith Institute is a free market, neoliberal think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

The ASI estimates that each case leads to 5.76 individuals isolating based on data from previous weeks across England, Wales, Scotland and Northern Ireland. This includes 3.05 from the app and 2.34 contacted directly by test and trace services.

Salt & sugar taxes could cost shoppers up to £4.8 billion each year

Henry Dimbleby's National Food Strategy has proposed sugar and salt taxes on everyday staples that may see every household forking out an extra £172 per year to the taxman. 

Dimbleby predicts the tax would cost households between £2.9 and £3.4 billion per year, but think tank estimates put this far higher. A comprehensive tax on salt and sugar consumed could mean a £4.8 billion tax bill.

The recommendation of a £3/kg tax on sugar and a £6/kg tax on salt in processed foods is expected to increase prices on everyday essentials. Foods affected by the tax could include store cupboard staples such as jam, ketchup and cereals, which could increase in price by almost a half. The tax could also see the price of chocolate bars increase by almost a quarter, multipacks of sweets by almost a third, and crumpets by almost a quarter. 

The tax could be felt in restaurants and takeaways, increasing the cost of a dozen Krispy Kreme doughnuts by around 50p and a Domino’s pizza by more than 30p. This could be particularly difficult to tax in small restaurants, where quantifying the amount of salt and sugar used in every dish is burdensome.

Despite backing away from a potential additional tax on meat, the report demands a reduction in meat consumption, with the salt and sugar tax hitting products like bacon, corned beef and sausage rolls.

The TaxPayers’ Alliance, Adam Smith Institute, and Institute of Economic Affairs argue the proposals would target consumers, food manufacturers and the already struggling hospitality industry. It would be deeply regressive and see food items become either tasteless or reduced in portion sizes. 

Examples of food impacted by the tax:

• Breakfast staples like strawberry jam and frosted cornflakes could become around 46 and 33 per cent more expensive (£1.25 to £1.82 and £3.50 to £4.66) respectively.

• Storecupboard sauces like ketchup and soy sauce could become around 23 and 43 per cent more expensive (£1.99 to £2.44 and £0.60 to £0.86) respectively.

• Treats like Skittles and Twix bars could become around 32 and 25 per cent more expensive (£1.50 to £1.99 and £1.25 to £1.56) respectively.

• Snacks like brownies and chocolate digestives could become around 21 and 18 per cent more expensive (£1.65 to £1.99 and £1.35 to £1.59) respectively.

• Lunchtime choices like crumpets and jarred sandwich spread could become around 24 and 14 per cent more expensive (£0.25 to £0.31 and £1.70 to £1.93) respectively.

• Family dinners like pizzas and pasta sauce could become around 15 and 6 per cent more expensive (£3.50 to £4.02 and £1.75 to £1.86) respectively.

• Takeaways like Krispy Kreme doughnuts and Domino’s could become around 3 and 1.5 per cent more expensive (£15.75 to £16.22 and £20.99 to £21.32) respectively.

John O’Connell, Chief Executive of the TaxPayers’ Alliance, said: 

"This is yet another case of middle-class meddling that will hit the poorest families hardest, as this madcap scheme will hike up costs of everyday essentials. 

“Not only do the high priests of the nanny state think that ordinary folk can't look after themselves, they also can't resist dipping their hands into taxpayers' pockets. 

“The government must reject outright any tax hikes and instead trust British families to make their own choices."

Dr Eamonn Butler, Director of the neoliberal think tank the Adam Smith Institute, says:

“We thought the nanny state had died during the pandemic, but the blob marches on thanks to a man whose privilege blinds him to the blight his proposed policies would inflict on a nation that does not want his prescription.

“Boris needs to stand up for the consumer interest and say that there is no benefit for ordinary families from increasing the cost of food while ruining its taste. 

“Henry Dimbleby should have looked at how his own firm could bring down the cost of good quality food to the reach of ordinary Britons before he decided to play with everyone else's food.”

Christopher Snowdon, Head of Lifestyle Economics at free market think tank the Institute of Economic Affairs said:

“Once again, rich people want to clobber ordinary people with stealth taxes, this time on sugar and salt. By Mr Dimbleby’s own admission, this cash grab will cost consumers £3 billion, but independent analysis suggests it will cost even more.

At a time of rising inflation, after the deepest recession in 300 years, Mr Dimbleby really needs to read the room. He rightly says that a meat tax would be unpopular and regressive. If Boris Johnson is foolish enough to act on these recommendations, he will soon find the same is true of taxing basic nutrients.”

Aussies & Brits tell Govts: Get trade deal done

• Two-thirds of Brits and Aussies back a Australia-United Kingdom free trade deal. 

• There is majority support for the deal across all UK regions, party voters, age cohorts, education levels, and Leave and Remain.

• Brits believe Australia has high food safety and animal welfare and do not want to block a deal to protect British farmers from competition.

• Brits want to buy more Australian wine, beef and lamb — and Tim Tams and Kangaroo meat. Aussies want more UK cars, British cheese, and Scottish whisky.

• Brits want Australia to trade just as easily if not easier than the UK with the European Union. 

A new poll from the free market think tank the Adam Smith Institute (ASI) and research and strategy firm at C|T Group RSR has found Brits and Australians want to expand trade and secure a comprehensive deal. 

• 65% of Brits support a free trade deal with Australia, 5% are opposed; there is majority support across all key demographic groups across the United Kingdom, and across the political spectrum.

• 69% of Aussies support a free trade deal, 3% are opposed

Leading pollster and Head of Research at C|T Group RSR, Dr Michael Turner, found that Australia is the foremost priority to expand trade among Brits. This comes from a strong belief in Australia’s high standards, that a deal will benefit both sides as well as the close family and friendship connections between Brits and Aussies. 

• Two-thirds of Brits (66%) believe Australia has high standards of food safety and animal welfare, just 6% of people believe Australia has low standards

• Australia is the top priority for more trade for Brits, with two-thirds (66%) of Brits saying the UK should trade more with Australia; followed by Canada (63%), New Zealand (61%), the United States (48%) and Japan (42%)

• 72% of Aussies want Australia to be trading more with the UK

• 74% of Brits believe both countries will benefit from a free trade deal

• 73% of Aussies believe that both sides will benefit

Brits back a tariff-free deal that allows consumers to access a wider range of goods, recognises nursing qualifications without retraining and allows more people to live and work across countries. Brits want to see more jobs created, British businesses become more internationally competitive, and reduce barriers to investment.

• 91% of Brits would feel comfortable being treated by an Australian nurse, 73% believe that nurse should not have to requalify before practicing in the UK

• 62% of Brits believe it should be easier to move between countries, 8% think it shouldn't be easier

There is also substantial interest among Brits in consuming more Australian goods, and among Aussies in consuming more British goods.

• A majority of Brits say they would buy more Australian wine (57%), beef (52%) and lamb (50%) if it were stocked more frequently. There is also interest in purchasing Anzac biscuits (33%), Tim Tams (28%), Kangaroo meat (23%), vegemite (23%) and lamingtons (20%).

• Australians are interested in purchasing more British goods if they were stocked more frequently and cheaply, including shortbread (59%), British cheese (53%), jam and marmalade (51%), Cornish pasty (47%), Scottish whisky (45%), Yorkshire tea (41%), gin (36%), Marmite (25%) and Irn Bru (22%). 

• 68% of Aussies would consider purchasing a British-manufactured car

MYTHBUSTING: The efforts of a vocal pressure group to scupper the deal to protect British farmers has not resonated with the public. The British people back British farmers to compete globally. If the deal does go ahead, Brits want a short transition period and do not consider protecting farmers to be a reason worth blocking the deal.

• 63% would support a trade deal with Australia even if it means that increased competition would reduce profits for British farmers and some might go out of business; just 20% would prefer to block a deal to prevent British farmers having more competition

• 64% believe British farmers should compete on an equal basis with foreign imports of the same standards; 52% believe they should not be denied access to Australian farming goods produced at a lower price

• 68% of people think that the transition period on beef and lamb should be 2 years or less

If push came to shove, most Brits say that they would prefer to trade with Australia over the European Union, and more than four-fifths of voters feel that trade with Australia should be at least as easy as it is with the EU. 

• 84% believe Australia should be able to trade with the UK more easily, or just as easily, than the EU

• 52% would opt for Australian beef as an alternative to British beef, just 24% would opt for EU beef

Australians prioritise diversifying trade away from China, and a clear majority say that Australia should increase links with like-minded countries like the UK.

• 54% of Australians would prioritize expanding trade with UK, compared to 4% that want to prioritise China and 31% who say both

• 77% of Aussies believe it is essential that Australia trades more freely with its closest allies

 Michael Turner, report co-author, Head of Research (Director) at C|T Group RSR and a Fellow of the ASI, said:

“This research not only shows that Brits believe in the core benefits of free trade. From Tim Tams to Cornish pasties, Aussie beef to British cheese, the results show consumers in both countries have a healthy and reciprocal appetite to consume goods made in each other's countries.

“Contrary to the popular narrative of the inward-looking and protectionist Brexit voter, this research shows that the overwhelming majority of those who voted to Leave the EU in 2016, are in fact supportive of a more outwardly-focused and freely trading Britain post-Brexit.

“Four in five Brits agree that a successful domestic industry requires more global trade, not less. This UK-Australia trade deal should be, as the Aussies say: ‘no wuckas mate.’”

Matthew Lesh, report co-author and Head of Research at the Adam Smith Institute, said:

“The Australia-United Kingdom trade deal isn’t some distant elite project. It is deeply supported by Brits and Aussies. 

“The British public have little interest in the pronouncements of self-interested lobbyists that want to restrict them from accessing Aussie produce. From Australian wine, beef and Tim Tams to Scottish whisky and UK cars, we want to eat and drink each other’s finest products. We want the ability to live and work in each other’s countries and to recognise our qualifications as equivalent.

“In an increasingly complex world, there’s a need for good mates not only to stick together but to become even closer. That’s what Australians and Brits want.

Notes to editors:  

For further comments or to arrange an interview, contact Matt Kilcoyne: matt@adamsmith.org | 07584778207.

The report ‘Ever closer mates: The deep support for an UK-Australia trade deal’ is available here.

Dr Michael Turner is Head of Research (Director) at at C|T Group RSR and a Fellow of the Adam Smith Institute. Matthew Lesh is the Head of Research at the Adam Smith Institute and an Adjunct Fellow at the Institute of Public Affairs (Australia)

The Adam Smith Institute is a free market, neoliberal think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Rishi's rush to tax sells Britain short

In response to the Chancellor announcing a global minimum tax rate cartel of the G7 Nations, Deputy Director Matthew Kilcoyne says:

"Rishi has rushed out an announcement that the G7 has created a global tax cartel. The world's most powerful governments have clubbed together to shirk the responsibility of going for growth and chosen instead to maximise the taxman's take — and all at our expense.

“In doing so the UK Government has signed away the primacy of Parliament in setting taxes for the British people — and the rights of the Overseas Territories and Crown Dependencies to set their own fiscal policy. A quarter of a millennium ago our American cousins fought a revolution to reject Westminster’s taxation without representation. Half a decade ago Britons voted to take back control over all the rules of the economy. Nobody voted to hand power over our taxes to Washington’s demands.

“These proposals are not in the UK’s interest and Rishi has sold Britain short. Rishi Sunak’s flagship policies of Super Deductions and Free Ports are dead in the water. The Chancellor's own policies, scuppered by his own hubris."

To arrange an interview or further comment, please contact Matt on 07904099599

(happy) Tax Freedom Day 2021

As of June 2024, this is out of date. Please refer to Tax Freedom Day 2024 for the updated statistics.

TAX BURDEN HIGHER THAN AT ANY TIME SINCE 1995

Taxpayers worked 150 days for the Boris and the taxman this year, today is the first day they start working for themselves

• Tax Freedom Day falls on May 31st

• Brits work 150 days of the year solely to pay taxes, pandemic spending and no plans to reign in political projects means taxes likely to rise in future years

• Tax demands are at a record high, even prior to taking into account the full scale of the pandemic. MPs provide their comments on the need to reduce the burden on businesses, hard working families, and the need for the Conservative Party to return to conservative and free market principles

Tax Freedom Day is a measure of when Britons stop paying tax and start putting their earnings into their own pocket. This year the Adam Smith Institute has estimated that every penny the average person earned for working up to and including May 30th went to the taxman—from May 31st onwards they are finally earning for themselves. 

British taxpayers have worked a gruelling 150 days for the taxpayers this year. Brits will fork out £730 billion to the Treasury this year, over two-fifths of every pound we earn. More of us are working for Boris than worked for the taxman in any year under New Labour, the Coalition or Theresa May’s governments. Britain’s tax burden is moving in the wrong direction. 

Unfortunately for Britons, this Tax Freedom Day cannot yet fully take into account the tax costs of measures taken to tackle COVID19 — and the Government has been borrowing hundreds of billions more to finance the covid response. All borrowing is a form of taxation deferred and the hundreds of billions of pounds borrowed to tackle this viral threat will only begin to be borne in future years and as the government begins to unlock economic activity. 

Tax Freedom Day is over a month and a half later in the UK than it is in Biden’s America, where workers started taking home their own pay from April 16th this year.

With talks of global minimum taxes on the businesses that allowed millions of us in the UK to work from home and still get fed, entertained and connected, the minimum governments could do is look again at the costs they impose on all of us. As the pandemic comes to an end we need a new approach that lets taxpayers keep more of their money, which grows our economy, creates jobs and boosts wages.

It’s easy to spend other people’s money. What we need now is a plan to reduce the burdens on working people, that lets them keep a little more of their hard-earned money.

Dr Eamonn Butler, Founder and Director of the Adam Smith Institute, said:

“Borrowing off the backs of others is easy, making sure the books are balanced is the hard part. We can all forgive the government reaching for easy credit in a crisis but the fact of the matter is that the cost of government has been on a rising path for years now. As politicians prepare to say that businesses and families need to prepare for global minimum taxes, the least they could do is to look again at the burdens they’re putting onto all of us to pay for their largesse.”

Tom Clougherty, head of tax at the Centre for Policy Studies, said:

"The latest Tax Freedom Day in decades should serve as a stark reminder that this isn't the time for tax increases. Instead, the Government needs to come up with a plan to overhaul the tax system – so that it can raise money as efficiently as possible, while also reducing the burden on people's earnings and investments. Without radical reform, we risk ending up in a vicious circle of tax hikes and weak economic growth."

Mark Littlewood, Director General of the Institute of Economic Affairs, said:

"That Tax Freedom Day falls so late in the year is a sign this government is failing to deliver on what is left of its free market rhetoric. We in fact live under a high-tax, high-spend government that is on track to create an overall level of taxation to rival Clement Atlee's socialist administration. We are approaching, if not at, our taxable limit and repairing the public finances post-COVID will require expenditure cuts, not further tax hikes."

Duncan Simpson, research director of the TaxPayers' Alliance, said: 

"Tax Freedom Day couldn't come a moment too soon. Sadly it gets later and later every year, as struggling families are battered by endless hikes and taxes reaching the highest sustained level they've been for 70 years. Hard hit households need tax cuts now more than ever, to ease the burden and help them recover from the covid crisis.”

Rt Hon Sir Iain Duncan Smith, Member of Parliament for Chingford and Woodford Green, said:

“I congratulate the Adam Smith Institute for their brilliant work in bringing together calculations of the whole tax burden so that we understand better just how much tax we pay to Government. We can see from their analysis that the tax burden has risen over the years. Since I first came into Parliament, we are now working for the Government for a whole extra month before we are working for ourselves. This indicates the scale of Tax rises through both Labour and Conservative Governments. The chart the Adam Smith Institute have produced makes it very clear and easy to understand that the tax burden has risen steadily over the years and for that I congratulate the Adam Smith Institute. I hope that the Government will look carefully at this and understand that no matter the debates at general elections -  the truth is that tax has risen.”

James Gray, Member of Parliament for North Wiltshire, said:

“Like my fellow Glaswegian, Adam Smith, I am a strong supporter of less government, greater individual freedom, lower 'safety nets' provided by society and as a result of that a lower need for National or local taxation.  Freedom Day should, in my view, be as close to Ne'erday as it is possible to be.”

Tim Loughton, Member of Parliament for East Worthing & Shoreham, said:

“Tax Freedom day is a stark reminder just how heavily individuals are taxed and it is always alarming when this date gets progressively later in the year. Good Conservative governments acknowledge that people are incentivised by lower and fairer tax rates and this usually results in a higher tax take to the Exchequer overall in any case, so notwithstanding the current strains on our finances caused by the pandemic I hope we return to good Conservative government principles as soon as possible.”

Alex Stafford, Member of Parliament for Rother Valley, said:

"As the days get shorter and shorter, so Tax Freedom Day gets further and further away from the start of the year. True freedom is allowing us to keep more of our own money in our pockets - so that we, rather than the Government, can choose where it goes. With the economic impact of Covid being felt, now more than ever, do we need true control over our own finances." 

David Simmonds, Member of Parliament for Ruislip, Northwood and Pinner, said:

"Everyone in politics needs to be thinking about how hard someone has had to work to earn the money that government is spending, and ask, if they were in my position, would they agree that this spend represents value for money?" 

Greg Smith, Member of Parliament for Buckingham, said:

“High taxes are a barrier to growth, a disincentive to invest and calamitous for family finances.  With tax freedom day coming later and later, it is imperative to cut taxes and go for growth.” 

Stephen McPartland, Member of Parliament for Stevenage, said:

“The only way to level up the country is to let people keep more money in their own pockets to spend in their local communities. The farcical behaviour of local and national government on fantasy projects and schemes, which sound good in a press release but in reality act as barriers to employment and investment locally, must stop.”

Sir Desmond Swayne, Member of Parliament for New Forest West:

“Individuals make better decisions about what is best for them and their families. The more we are allowed to do so, the better we will be for it. The more we have to work just to pay for government and it's priorities, so proceeding, our initiative and enterprise is diminished.”

Andrew Lewer, Member of Parliament for Northampton South, said: 

"The trend for Tax Freedom Day to get ever later in the year was well established before the trauma of Covid-19 hit us. We have had a Conservative-led Government since 2010 and so we are well overdue for this trend to be reversed. I hope that those in leading positions in Government will be mindful that increased tax RATES often do not mean increased tax TAKES." 

Christopher Chope, Member of Parliament for Christchurch, said:

“The ASI analysis is a timely wake up call to Conservatives  of the need to  take back control from the State .Taxation is the enemy of personal liberty because it transfers choice and responsibility for spending  decisions from families and individuals to wasteful bureaucrats.”

Steve Baker, Member of Parliament for Wycombe, said:

“It doesn’t just feel like it, tax freedom day does arrive later every year under Conservative Governments. This cannot go on. In order for us all to be prosperous, eventually Conservatives must stand up for the formula we have always believed in - that means lower taxes.”

Bob Blackman, Member of Parliament for Harrow East, said:

“Over the past year, significant revisions to the net national income stats have pushed Tax Freedom Day back by around a week In 2020, we worked 150 days just to pay our tax bill.

“From May 30th onwards, we’re working for ourselves. Tax Freedom Day is now later than at any time since 1995. High taxes discourage work, investment, and economic growth. We must encourage everyone to take TaxAction by making the most of their tax reliefs. Assuming that people stick to those things approved by HMRC then there are several legitimate schemes an individual can take advantage of to reduce their tax bill.”

John Baron, Member of Parliament for Basildon and Billericay, said:

“Although taxes support our vital public services, it’s nevertheless good news that we are all now ‘working for ourselves'. The Government should work hard to keep taxes low – and must remember the lessons of the Laffer Curve.

Robert Goodwill, Member of Parliament for Scarborough and Whitby, said:

"Tax Freedom Day is a brilliant way of bringing home to ordinary people just how burdened we are with tax.  The pandemic has resulted in unprecedented peace time levels of public expenditure, but we do need to bring this under control and ensure that in future Tax Freedom Day can be earlier in the year and not later!" 

Geoffrey Clifton Brown, Member of Parliament for the Cotswolds, said: 

“As Deputy Chair of the Public Accounts Committee, I am extremely conscious that every pound spent by Government eventually must be raised in taxation. It is probably inevitable that some taxes will have to rise to pay for the enormous expenditure throughout the pandemic. But the long-term aim of Government should always be to keep taxation as low as possible, conducive to providing a reasonable level of public services. The individual or the family always know how to spend their own money more wisely than the Government.”

Henry Smith, Member of Parliament for Crawley, said:

"The fact that almost half a year elapses before we are in essence free of paying tax, is a sober reminder of the state's financial  burdens on us. A lower tax economy produces growth, which in turn creates a greater common wealth - we do well to remember this, especially given the serious demands on us as individuals and as a nation at this time." 

Alun Cairns, Member of Parliament for Vale of Glamorgan, said:

“It’s hard to believe that we work 150 days just to pay our taxes.  This brings into focus the principle of effort and reward for the benefit of all in society.  I pay tribute to the Adam Smith Institute for maintaining focus on this important acid test of fiscal discipline.  We all recognise public spending commitments but Tax Freedom Day underlines that we all pay, in the end.” 

Notes to editors:

For further comments or to arrange an interview, contact Matt Kilcoyne, matt@adamsmith.org | 07904099599

The Adam Smith Institute is a free market, neoliberal think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Government to repeal the Porn Laws

The Government's Online Safety Bill (Clause 131) will quietly abolish the much-dreaded Porn Laws.

The Adam Smith Institute’s Head of Research Matthew Lesh responded to the news:

"The repeal of the Porn Laws is excellent news for our privacy and online freedoms. This will mean Brits won't have to buy a state-sponsored porn pass or provide their credit card, passport or driver’s licence every time they visit a porn site.

"But we shouldn't celebrate too quickly. This is a pyrrhic victory. The Online Safety Bill will mandate age verification to access the adult versions of Twitter, Facebook and YouTube. Until you present a drivers' licence or passport, the sites will be forced to only display child-appropriate content. 

“Just like repeatedly approving cookies, constantly verifying your age will add huge inconvenience to surfing the internet. It would also mean forcing Big Tech to gather even more private data about individuals, risking our privacy and online security.”

Learn more about the Adam Smith Institute’s efforts to Repeal the Porn Laws.

For further comment or to arrange an interview, please contact Matt Kilcoyne via 07904099599 or email matt@adamsmith.org