Tax cut for rich means billions lost to Exchequer

Cutting income tax for people earning more than £1m per year has deprived the Exchequer of more than £11.1bn over the past sixyears, according to new analysis by UNISON published today (Sunday). The government’s decision to reduce the top rate of income tax from 50p to 45p in April 2013 has also saved the rich hundreds of thousands of pounds, while public sector workers have not had a decent pay rise in years, says the union. An examination of HM Revenue & Customs (HMRC) statistics by UNISON shows that between 15,000 and 19,000 taxpayers earned in excess of £1m over the past sixyears. This is since the then Chancellor George Osborne introduced the tax cut. UNISON’s analysis finds that this has meant £11.1bn less in the Treasury coffers, allowing the UK’s super earners each to reduce their tax bill by more than £656,000 on average over the six-year period. The union has identified how these ‘lost’ billions could instead have been spent on public services. The £11.1bn could have funded every year for five years: An extra 30,000 nurses1; 10,000 extra police community support officers (PCSOs)2; 15,000 extra police officers3; and 20,000 newly qualified teachers4. At least 50,000 bursaries for nurses, midwives and other health professionals5; 10,000 extra nurses1; 15,000 extra PCSOs2; 15,000 extra police constables; and 10,000 newly qualified teachers4. Social care could also have benefited from an additional £1.85bn every year since 2013 with £11.1bn over s...
Source: UNISON Health care news - Category: UK Health Authors: Tags: News Press release dave prentis government nurses public services social care Tax UNISON Source Type: news