ASI reaction to the Conservative Manifesto features in The Daily Telegraph

Director of the Adam Smith Institute Dr Eamonn Butler was quoted in The Daily Telegraph on the Conservatives’ pledge to keep minimum wage earners out of tax:

“It’s been an absurd part of UK tax policy that people making the minimum wage have had their earnings taxed away. The Conservatives should be applauded for making a firm commitment to keep those on the minimum wage out of income tax, regardless of future rises to the minimum wage” said Adam Smith Institute director Eamonn Butler.

“However, to truly take the lowest-paid out of tax, the Tories would do well to reevaluate the National Insurance threshold.”

Dr Butler and Kate Andrews, Head of Communications at the Adam Smith Institute, were also quoted in The Telegraph online on the minimum wage pledge and the childcare pledge:

The Adam Smith Institute’s Kate Andrews said the plan could inflate the cost of childcare. “The cost of childcare is unaffordable for many families, but it’s government funds that are perpetuating the distorted and expensive childcare market. Providing more childcare benefits will only exacerbate the problem.”

 

Adam Smith Institute director Eamonn Butler welcomed the change. “It’s been an absurd part of UK tax policy that people making the minimum wage have had their earnings taxed away,” he said. “The Conservatives should be applauded for making a firm commitment to keep those on the minimum wage out of income tax, regardless of future rises to the minimum wage. However, to truly take the lowest-paid out of tax, the Tories would do well to reevaluate the National Insurance threshold.”

Read the full article here.

 

 

ASI reaction to the Conservative Manifesto features on Conservative Home

The Adam Smith Institute’s reaction to the Conservative Manifesto was featured on Conservative Home:

Dr Eamonn Butler, Director:

“It’s been an absurd part of UK tax policy that people making the minimum wage have had their earnings taxed away. The Conservatives should be applauded for making a firm commitment to keep those on the minimum wage out of income tax, regardless of future rises to the minimum wage. However, to truly take the lowest-paid out of tax, the Tories would do well to reevaluate the National Insurance threshold, which goes into the same revenue pot as income tax yet continues to sit far below the personal allowance threshold.”

Read the full article here.

Press Release: Conservative Manifesto a mixed bag for workers (minimum wage, housing and childcare)

For further comments or to arrange an interview, contact Head of Communications Kate Andrews: kate@adamsmith.org | 07584 778207

Commenting on the Conservatives’ pledge to keep minimum wage earners out of income tax, Director of the Adam Smith Institute Dr Eamonn Butler said:

It’s been an absurd part of UK tax policy that people making the minimum wage have had their earnings taxed away. The Conservatives should be applauded for making a firm commitment to keep those on the minimum wage out of income tax, regardless of future rises to the minimum wage.

However, to truly take the lowest-paid out of tax, the Tories would do well to reevaluate the National Insurance threshold, which goes into the same revenue pot as income tax yet continues to sit far below the personal allowance threshold.

Commenting on the Conservatives’ housing pledge, Dr Butler said:

The Tories are right to put the UK’s housing crisis at the heart of their manifesto and to prioritise giving low-earners the opportunity to buy their own home. But a £1 billion fund for Brownfield regeneration won’t come close to supplying Britain’s needed, and missing, homes.

The only way to create long-term affordable housing is to liberalise the planning system and allow for millions of houses to be built where people actually want to live. Building on just 0.5% of the UK’s Green Belt , for example, would be enough to fulfil UK housing needs for the next decade (though building on 1% of England’s Green Belt would fully fix Britain’s housing market by bringing prices down as well creating supply).

Commenting on the Conservatives’ childcare pledge, Head of Communications Kate Andrews said:

The cost of childcare is unaffordable for many families, but it’s government funds that are perpetuating the distorted and expensive childcare market. Providing more childcare benefits will only exacerbate the problem.

Ofsted regulations around childcare are some of the harshest in Europe, and it’s those requirements, including stringent qualification requirements and low mandatory child-to-staff ratios, that have caused prices to skyrocket.

“The Tories’ commitment to more childcare spending will probably just reenforce the vicious cycle of high costs; to truly tackle the price of childcare, the sector must be deregulated.

Notes to editors:

For more information, read ASI report “The Green Noose: An analysis of Green Belts and proposals for reform“, which looks at the Green Belt’s impact on England’s housing shortage.

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

ASI comments on non-dom tax provisions feature in The Daily Telegraph

The Adam Smith Institute’s comment on non-dom tax provisions was quoted in The Daily Telegraph:

However, experts have attacked the proposals, warning that scrapping the non-dom tax status could lead to an exodus of top talent from Britain and “put the UK’s international reputation at risk”.

The Adam Smith Institute has said the plans risked “cutting off the country’s nose to spite its face”, while Simon Walker, director general of the Institute of Directors, said: “There is a serious risk that large numbers of the international financial community, who have headquartered themselves in London at least in part because of our tax regime, will now exit the country.”

Read the full article here.

ASI briefing paper “Non-Sense: Examining the arguments and rhetoric around non-dom tax provisions“debunks the oft-quoted claims being made by politicians about non-doms and highlights the potential financial risks associated with Labour’s proposed changes to the rules.

The paper explains how Miliband’s proposed changes to the tax rules could cut government revenue, drive away investors and risk hurting middle-income migrant workers registered as non-domiciled in the UK.

Kate Andrews’s comments on compulsory voting feature in City AM

Head of Communications at the Adam Smith Institute, Kate Andrews, was quoted in City AM on a new poll that found the majority of Britons support compulsory voting:

“It’s clear that Britons have a deep respect for the right to vote,” said head communications at the libertarian Adam Smith Institute Kate Andrews. “But that right should never be conflated with a duty for individuals to actually take part in the voting process.”

“Many argue that one could simply spoil their vote if voting were compulsory, but this does not take into account people who are choosing not to vote to protest government structure or the voting process. Indeed, not voting is the best, safest form of civil disobedience one can take part in,” Andrews argued.

Read the full article here.