Economy

Fundamental Principles.

  • Government current activity should be financed entirely by taxation. Debt finance should be used only for infrastructure projects.
  • Public expenditure should be devolved to the smallest administrative level possible. The power to raise specific taxes to fund that expenditure should be devolved as well.
  • We aim over time to move taxation towards sales and revenue and away from Income and profits. We aim to abolish both income tax and national insurance. Taxation policy will be biased in favour of employment.
  • Taxation policy will be deliberately biased in favour of small and medium sized enterprises. It will be deliberately biased against large corporations.
  • All economic analysis and statistical activity should be produced by bodies that are genuinely independent of central government.
  • Corporate taxation should be based on transactions rather than profits thus reducing the ability of international companies to move taxation liabilities offshore.
  • The eleven UK permanently inhabited overseas territories, many of which are tax havens, should have their current dominion status ended. They should each democratically choose between independence or full integration with the United Kingdom.
  • Government and the Bank of England will no longer have a monopoly on the issue of currency. Digital currencies, local currencies and precious metals, along with other mechanisms, will all be valid mediums of exchange, provided taxation liabilities can be recorded and settled.
  • Ultimately our aim is that the British currency is backed by fixed assets. Inflation of the money supply will be limited to 3% per annum and that increase in the money supply will be available solely for the purpose of government infrastructure spending. Financial returns on loans for infrastructure spending will be shared equally amongst the UK population through non-transferable stakeholder accounts.

Implementation

In fiscal year 2019/20 the UK Government had expenditure of £799 billion and raised total tax revenue of £755 billion.  We aim to stabilise income and expenditure at the level of £700 billion per annum and increase this by no more than the level of annual inflation. The reduction in public expenditure will be achieved through

  • Reducing management layers within public sector bodies
  • Reducing senior management and executive pay within the public sector by 25%
  • Reducing the number of Quangos.
  • Reducing the size of the civil service by 20%

The Office of National Statistics and Office of Budget Responsibility will be abolished. They will be replaced by an independent Statistics and Economics Office whose directors will be appointed by the parliaments of the four UK nations.

Local authorities will be granted the power to vary council tax band rates and to create an additional band J. The valuation process will remain independent of local authorities.

We aim to abolish all property taxation on primary residences with a value less than £250,000. Over time and as government finances permit we would aim to raise this threshold to £500,000.

We will introduce a digital sales tax to ensure a level playing field is established between online and physical retailers. Foreign digital purchases will be subject to tariffs equivalent to the digital sales tax, the prevailing VAT and an administrative charge.

All primary residential mortgages will be backed by the central bank and will have a 0% interest rate.

The bank bail in system to be ended and all bank deposits under £100,000 to be completely secure in the event of bank insolvency.