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Why risk it?
With the new tax year upon us, individuals, families, and businesses are bracing themselves for a raft of tax hikes. From council tax and vehicle excise duty to employers national insurance and stamp duty land tax, Brits are under the cosh. The threshold freezes squeeze low, medium, and high earners alike.

Ministers would have you believe that all this pain is to restore the public finances. Rather than take a look at spending within their means, they want you to pay more. Of course the only way to get out of the mess is to support the businesses and entrepreneurs that actually create wealth, not that this lot seem to understand that. Indeed, new TPA research has exposed how little incentive there actually is to take the plunge and try something new.
Crunching the numbers ([link removed]) , Shimeon Lee reveals that an entrepreneur who hopes one day to pass something on to the next generation could find themselves staring down the barrel of an 84 per cent marginal tax rate - and that’s after some reasonable tax planning!

When entrepreneurs earn, they often exceed numerous tax thresholds, save and invest their earnings, and ultimately pass them on to their children. As a result, the same money is taxed repeatedly before it is ever spent, leading to an exceptionally high marginal tax rate.

The research caught the attention of BrewDog founder (who knows a thing or two about starting a business) James Watt, and he cut straight to the heart of the problem ([link removed]) on Linkedin: “After putting everything on the line — the long hours, the sleepless nights, the personal sacrifices — you’re left with barely 10-15p for every pound you generate here. Someone please tell me how that is fair?”
In an op-ed for City A.M., John O’Connell was bang on ([link removed]) with his assessment: “we should remember the basics. If you want less of something, you tax it more – as most countries do with things like tobacco and alcohol duties. Why do we think the same doesn’t apply to entrepreneurship? If we want more of it, we need to cut taxes.”

While you can read the full paper here ([link removed]) , Atlanta Neudorf has provided an excellent summary ([link removed]) in her debut TPA blog. Underlining why this matters so much, Atlanta writes: “It is no secret that entrepreneurs are highly valuable to wider society, as well as to the economy. They create jobs, build wealth, and drive innovation. Britain’s post-pandemic business registration numbers were already falling in light of some of the highest tax burdens in our nation’s history. The current tax regime is pushing entrepreneurs away.”

If we ever want to get out of the high-tax, high-spend, low-growth death spiral, encouraging risk takers to go out and create the jobs and wealth we need has to be a top priority for policy makers. A tax system that hammers those who are prepared to put it all on the line will simply leave many asking “Why risk it?”

Help the TPA in our fight for lower taxes by clicking here to donate ([link removed])
Trump, Trade & Tariffs with Ted Bromund
As the impact of president Trump’s “Liberation Day” tariffs continue to reverberate around the world, podcast host Duncan Barkes is joined by John O'Connell and Dr Ted Bromund, former senior research fellow at The Heritage Foundation.
Given Ted's unique insight into the Washington political mindset, they discuss Trump, trade and tariffs, along with the possibility of a UK/US Free Trade Agreement. Give the latest episode of a nation of taxpayers a listen on Apple Podcasts ([link removed]) , Spotify ([link removed]) , and YouTube ([link removed]) .
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Stop the Chagos deal
Speaking of silly policies, ministers continue to push their bonkers plan to hand over the Chagos Islands to Mauritius and even have us pay for the privilege. Making matters worse, we learnt this week that the Mauritian government has come back asking for even more ([link removed]) .
With the bill estimated to be anywhere between £9 billion and £18 billion already, the idea of handing over even more is patently absurd. We need your help to put as much pressure on MPs as possible and put a stop to this ridiculous idea. Click here to write to your MP and help us stop the Chagos deal! ([link removed])
Bankruptcy bonus
Birmingham city council’s been back in the news recently and, once again, it’s for all the wrong reasons. Europe’s largest local authority may have declared bankruptcy back in 2023 but, along with also bankrupt Croydon, it seems they still found the cash to dish out generous “golden hellos” ([link removed]) .
As the rubbish piles up and the rats run free in the UK’s second city, these payments look like yet another cock-up from the basket case administration. Elliot Keck was on the money speaking to the Telegraph: “Birmingham’s flimsy excuse about ‘hard-to-recruit’ staff doesn’t wash - nor does Croydon’s deafening silence. Taxpayers deserve answers, not more reckless handouts from cash-strapped town halls.”
Diversity quangocrats
The latest investigation for our investigations guru, Joanna Marchong, has revealed the dramatic cost of equality, diversity, and inclusion (EDI) staff in Britain’s quangos ([link removed]) . Over £26 million was spent on these tick-box titans between 2021 and 2024. The College of Policing and the Crown Prosecution Service topped the table with the most EDI roles. Talk about priorities.
Joanna shared the news ([link removed]) with the Telegraph, telling readers: “Taxpayers will be furious that EDI roles continue to plague the public sector. Despite ministers pledging to cut waste, these costly, unaccountable and counter-productive roles are still draining public funds.”

You can help push back against the right-on pen pushers by signing our petition to ditch the diversity demagogues here ([link removed]) .
The worrying love of the big state
While Rachel Reeves may have made some high profile spending cuts (see winter fuel payments and minor tinkering to the benefits system), I doubt anyone reading this bulletin would seriously believe that her plans currently involve any significant efforts to control public spending.
While we know this to be true, new polling has revealed that three in ten Brits say they think the current government is making bigger spending cuts than the coalition government, and a further 16 per cent see the current cuts as being on a par with the coalition era. Marking another debut on the TPA blog ([link removed]) this week, Emma Revell of the Centre for Policy Studies explores the challenge faced by those of us who believe getting a grip on runaway public spending is key to our future national success. Emma writes: “Yes, organisations like the Centre for Policy Studies, TaxPayers' Alliance and others need to work on how to rein in the runaway growth of the state. But we also need to work out how to sell the public on why.” Have a read of Emma’s blog in full here. ([link removed])

Thanks for reading. Tune in next week for more.

Benjamin Elks
Grassroots Development Manager

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