The decision to cut child benefit for those earning more than £44,000 may seem to some British Gazette readers the right thing to do. The British Gazette would strenuously disagree. It is not often this organ will agree with the Europhile Polly Toynbee, but in this issue we agree with her. Ms. Toynbee suggested that the government should have increased the rate of higher rate tax for all high rate taxpayers by the appropriate degree.
There is no doubt the country is in a financial mess. The country’s debts need to be paid off. Increasing taxes is the fairest way. The fact is however that the debt is so great the tax hikes would hurt all. Maybe some public spending could be trimmed in areas such as the arts, sports and culture.
The British Gazette is firmly of the opinion that in general terms it is better to increase taxes than to decrease public spending. Reason: It is better to spend the money to keep public sector workers in jobs – who are providing the services we rely on rather than spending on importing consumer goods from such as China.
If the public sector unions could be offered such it would help tackle something that has to be cut. The bill for the public sector pensions. There is an ever growing gap in the level of occupation pensions of the public and the private sector. Very few private sector workers have pension schemes as generous as those provided by the public sector. This bullet has to be bitten. Sooner rather than later. This is what the British Gazette suggests: Tax hikes and not public spending cuts and in return – the quid pro quo – the public sector unions agree to pensions reform to bring (over a period) public sector pensions in line with those of the private sector.