Economy & Tax Nigel Hawkins Economy & Tax Nigel Hawkins

Privatisation Revisited

This report calls on the government to undertake a radical new programme of privatization. There are still many attractive commercial operations in the public sector that should be privatized – for instance, Channel 4, BBC Worldwide, Scottish Water, Network Rail and many other firms. The report also calls for the government’s shares in RBS and Lloyd’s TSB to be sold off gradually over the term of the current government. Together, these privatizations would raise up to £90billion over a period of several years.

The report argues that many benefits would accrue if its proposals were implemented in full – particularly in terms of operational efficiencies. The major privatization wave under the Thatcher government opened up much of Britain’s industry to competition and helped the British economic miracle of the 1980s. In times like this, a return to this approach is required to rejuvenate parts of the British economy.

Britain’s national debt is approaching one trillion pounds and interest repayments are nearly £120 million every day. With this report, the government now has an instruction manual in how to begin paying down this debt and simultaneously jumpstarting the flagging British economy.

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Economy & Tax Adam Baldwin Economy & Tax Adam Baldwin

Taxpayer Value: Rolling back the state

'Taxpayer Value: Rolling back the state' urges the government to reduce the number of people employed by Whitehall departments and their QUANGOs by almost 27 percent. This would equate to almost 270,000 public sector job losses and deliver estimated savings of £55bn a year. However, the emphasis of this report is not on cutting for cutting's sake. Rather, the goal is to make the concept of 'taxpayer value' central to government activity and, in so doing, deliver better services at a lower cost. Among other recommendations, the report suggests that job centres be privatized and the tax and benefit systems integrated, that the military take over procurement from the MoD and purchase equipment 'off the shelf', and the Departments for International Development and Communities and Local Government be abolished.

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Economy & Tax admin Economy & Tax admin

Estimated revenue losses from CGT increases

International evidence suggests clearly that increases in capital gains taxes above a very modest level result in decreases in revenue. Similarly, if capital gains tax rates are set above a relatively modest level, then their reduction will involve an increase in revenues. This paper uses new evidence from Ireland, Sweden and Switzerland combined with existing analysis from America, Australia and Britain to try and identify more precisely the revenue consequences of CGT increases in the UK. It looks at both revenue losses from capital gains tax and from other taxes.

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