Manifesto

8. The Economy (Summary):

  • We believe in low taxation and believe it to be crucial for wealth creation.
  • We believe the tax system to be overly complicated and therefore will propose a simplification of tax in the UK.
  • The household tax bill has risen through stealth taxation to unacceptable levels under Gordon Brown, this dour Scotsman has not only plundered Britain’s pension funds but he has managed to raise the burden of taxation to a level not seen since the 1970’s and the previous Labour administration. We will reduce this burden and allow individuals to decide how best to spend their money.
  • We will reduce the tax burden on British business and allow them a level playing field to compete with developing economies such as China and India.
  • We will simplify self-assessment thereby encouraging greater compliance.
  • We will review and close the current VAT fraud loopholes that are not only costing the UK billions of pounds, but also the EU many more billions of pounds in lost revenue.
  • We would immediately abolish the grossly unfair inheritance tax.
  • We would cap council tax rises to a maximum of the level of inflation.
  • We would immediately abolish stamp duty on houses.
  • We support the independence of the Bank of England to control inflation.
  • We will encourage and support investment in our manufacturing heritage to provide long term job prospects and kick start Britain once again into producing its own goods.
  • We will provide the best possible environment for business to flourish and grow, free from regulatory constraints, free from European constraints and free from the over bearing bureaucracy, politically correct legislation and enforced European regulation.

8. The Economy (Detail)

Low taxation is at the heart of our economic policy. The tax burden has risen by at least 30% since 1997 with the resulting spend having not returned any value in the key areas of crime, health and education. A reduction in bureaucracy including the removal of politically correct positions within government and PC initiatives would immediately save billions of pounds of taxpayers’ money. We believe low taxation is crucial to wealth creation.

UK businesses currently pay too much tax, which ultimately results in long-term lower levels of revenue. For the economy to succeed, business must be allowed to flourish, to invest and grow, which in turn will result in higher levels of revenue in the long term.

A reduction over a two-year period in the business rate of tax from 30% down to 21% ,  in conjunction with a reduction in small business tax from 19% to 12% would kick start inward investment leading to economic growth.

The tax system must be simplified; it is currently overly complicated, resulting in higher costs for compliance.

The self-employed equally suffer with unnecessarily complex tax returns that again only encourage non-compliance; we propose a simplification of the self-assessment system.

The continuing EU expansion and developing countries, particularly China, all provide tough competition for UK business, we believe it crucial for the Government of the day to do all it can to help our businesses remain competitive in the face of such stiff competition.

The household tax burden since the start of the Blair Government has increased by as much as £6,000 in real terms – or £9,000 in cash terms – for every household in the UK. We believe this to be unacceptable and will result in an economic slow down leading to recession.

Highlighted below are some of the reductions we will introduce to shrink the current household tax bill.

  • Annual Council tax increases will be capped to a maximum increase of the rate of inflation
  • The grossly unfair inheritance tax would be abolished
  • Basic rate Income tax would be reduced from 22% to 20%
  • The threshold for the higher rate (40%) would increase from £33,301 to £50,000
  • We would review and simplify National Insurance Contributions
  • Stamp Duty on house purchases would be abolished

Because we believe higher taxes reduce economic growth (a reduction forecast of 0.5% per annum at the current level of taxation), we are justified in our commitment to reducing the overall level of Tax in the UK.

The spend in areas such as Social Protection (approx 145 billion), Health (approx 90 billion), Personal Social Services (approx 23 billion), Government Departments to maintain the current levels of bureaucracy, centralisation and Overseas Aid could be reduced by billions of pounds. Money that would be used to invest in our policies on law and order, education, health, defence and a reduction of the tax burden as outlined in this manifesto.

Investment in our own country must be the priority, once our own house is in order we can then help others. We cannot justify, for example, billions of pounds in Overseas Aid, if there are sections of our own economy under funded and we will not spend millions of pounds housing and keeping immigrants that have illegally entered our country.

Detail will be published within a period of 24 months, where we will make the savings necessary to make possible our proposals as outlined in this manifesto.

The independence of the Bank of England to control interest rates; this is one of the key factors in maintaining economic stability and will remain independent under a TradDemocrat government.

We will set out proposals that will help cultivate investment in our manufacturing heritage and encourage proper long-term job prospects in this area of the economy through training, education (apprenticeships) and investment. Our proposals on tax would encourage and cultivate such industries. We cannot continue to rely on the service sector as the major means of employment, it is crucial that we produce our own products and provide job prospects that will accommodate a more diverse demographic and in particular re-new job prospects for unskilled males.

Some of the constraints that keep UK businesses from being competitive will be loosened. The increased burden of regulation that has been imposed on some businesses by New Labour should be reviewed at once; we are committed to the process of de-regulation. We cannot only blame New Labour for such extensive instruction; Brussels has contributed considerably to this process. We have no faith in the Legislative and Regulatory Reform bill to simplify the process or release the shackles from business: we would propose our own bill free from European influence.

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