Allister Heath, editor of City AM, answers the question. It’s because UK taxation is too high. Quite apart from income tax, VAT, and the other direct taxes, the indirect and stealth taxes are making us pay far too much for everything, and all to support a bloated government.
Allister Heath reminds us that petrol (aka gasoline) is subject to a 58.8% tax, not even counting the corporation tax and the North Sea Oil Levy imposed upon it.
Air passenger duty is the world’s highest, adding £94 to long hail flights and £13 for flights within Europe. And Insurance Premium Tax bumps up the cost of travel insurance on top.
Oil and gas policy and regulation added 7% to prices in 2007, but this rises to 22% by 2020
The EU’s Common Agricultural Policy is a covert subsidy we are forced to pay to European farmers.
Tax on wine is 57% of the cost of an average £5 bottle, 31% of a pint of beer, and 79% of the cost of a bottle of vodka.
The Community Infrastructure Levy routinely adds £200 per square metre to building costs, sometimes up to £575.
Planning restrictions are so tight that a hectare of agricultural land that sells for £20,000 in Oxford, becomes worth £4,000,000 if it has residential planning permission. This restriction makes it very costly to build and raises the prices of everything produced or sold.
It all makes the UK expensive and uncompetitive. Politicians siphon off the wealth that Britons create in order to buy votes with it. Allister Heath’s solution? Cut unnecessary spending and slash taxes. It sounds easy, but we have yet to see a party bold enough to advocate it and to implement it.
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