The Taxpayers’ Alliance starts barking at the moon
I’ve just done a Sky News debate with Matthew Elliott of the Taxpayers’ Alliance. He suggested a new way of cutting public spending which breaches a whole new frontier in economic illiteracy (even for the TPA).
His brilliant idea: the public sector should follow the example of some manufacturing firms and put all staff on a four day week! By my calculations that would remove just over £30 billion from the economy in the particularly fragile area of household demand and cut about £7 billion from the Treasury’s income tax revenue (and this doesn’t include further tax lost due to reduced VAT and corporation tax resulting from the obvious decline in spending).
Of course, what a four day week would do to the services provided by our hospitals, schools and countless other public services is unthinkable.
It just proves that the TPA is essentially our version of America’s Republican right: utterly obsessed with shrinking the state beyond all reason and with no concern for the actual consequences for the economy, for ordinary working people or even for ordinary taxpayers.