Vested interests will fight to block necessary spending cuts (City AM)

City AM Editor Allister Heath cited CPS research from “The Progressivity of UK Taxes and Transfers” in his column this morning. 

To view the full article, visit the City AM website

“In fact, one of the most important facts about British society today is that over half the population receives more from the state in cash (including welfare) or kind (including the use of services) than pay in direct and indirect tax. Research from the Centre for Policy Studies reveals the number of such net dependents was just 43.1 per cent of total households in 1979; by 2000/01 the share was 43.8 per cent. But the numbers then shot up, reaching 53.4 per cent by 2010-11.

Of course, many of these are pensioners; lots of these net recipients vote Tory and may even support the cuts. There is no necessary link between being on the government’s payroll and supporting a bigger state.

But this nevertheless illustrates the challenge facing those who realise that the government needs to be downsized: the losers will be numerous and vocal; taxpayers, who stand to gain, probably won’t even notice.”

To view the full article, visit the City AM website.

Date Added: Wednesday 9th January 2013