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Budget and taxation

After years of poor management by successive governments and especially the last Labour government, the UK’s debt is huge and currently it is estimated that this government will spend around £120 billion more than it receives this year. This situation has to be addressed and in a much better way than by the Conservatives and Liberal Democratic Coalition. The last Labour government spent over £1 trillion pounds over ten years, money they did not have and now we all have to suffer and struggle to pay for it. For those who voted Labour think again, think NIC, New Independent Centralists.

As stated in our 2010 manifesto, there are three main areas which will produce substantial savings, unemployment benefits, local housing allowance and the NHS.

New Independent Centralists, NIC would only allow UK citizens and those granted UK citizenship to claim unemployment benefits. Today, this is not the case, many foreigners claim benefits. The current bill costs around £190 billion a year and with this change billions would be saved.

If you are registered as unemployed or receive any other form of income benefit, you are entitled to claim LHA (local housing allowance) for your accommodation. Again, if only UK citizens and those granted UK citizenship may claim, then substantial savings would follow.

The same rule would apply to the NHS. Currently this is not case and the abuse must be stopped. The NHS is our National Health Service not a European or global one for all. Accident and emergency cover, known as E111, would remain in place. The NHS budget totals around £150 billion a year and implementing this rule would reduce waiting lists and produce large savings.

Asylum Seekers

Stricter rules would be applied to all asylum seeker applicants and only truly genuine cases would be allowed to stay. The change would produce further savings.

Where foreign criminals have been convicted for crimes committed in the UK, on completion of their sentences would be deported and banned from the UK for a period of time.

Legal Aid

Stricter rules would be implemented in both criminal and civil legal cases. For example, criminals with assets would not be entitled to claim legal aid; those with confiscation orders made against them would not be released from prison until their debt order had been paid. Legal costs for divorce for instance, where a cash settlement will be agreed, legal aid would not be granted.

 Court Costs

As the law stands, it is possible to have a case heard in the Crown Court and before a jury rather than the Magistrates Court. The legal costs are far greater in the Crown Court; therefore if a crime has a value of less than £10,000 then it would only be heard in the Magistrates Court. This change would not only speed up the court process but produce further savings.

PFIs

The Private Finance Scheme (PFIs) would be reviewed. This scheme was introduced to allow the private sector to finance and build schools and hospitals on behalf of governments. The NHS and education authorities then lease these buildings from the private sector for a period of time. The reason the scheme was introduced is the building costs do not hit the government’s budget so in theory it appears that the country economically is spending less. But the cost of paying rent for the duration of the lease may not be in the taxpayers’ best interests; this scheme would be reviewed

Drugs

An area of income that is currently exempt from tax is drugs. The ‘war on drugs’ policy does not work. If there is a demand for drugs then there will always be a supply. In the 1930s, the American government introduced Prohibition which banned the consumption of alcohol. But Americans wanted to drink and so they did illegally. It is how the American Mafia evolved and made them vast amounts of money by supplying Americans with bootleg alcohol. The same applies to drugs, NIC will legalise and tax it. The worldwide drugs market is huge, best to think in trillions, in cash every year and all of it is untaxed. The ‘war on drugs’ in the UK would be over and recreational drugs would be standardised and regulated. It is estimated that 70% of all crime in the UK is now drug related.

Sex

It is a fact that if there is a demand, there will always be a supply and therefore NIC will legalise prostitution.

Taxation

Our tax system will be simplified for both individuals and companies.

NIC’s first priority will be for those on low incomes and therefore the tax free threshold would be increased. Tax rates would gradually be reduced as and when the budget deficit decreases.

National insurance contributions (NI) will be phased out as budget savings materialise. NI contributions were created some decades ago to pay for state pensions of the future but this pot of money was spent long ago by governments of the past and therefore its purpose no longer exists; it is just another form of tax. It would be phased out from a bottom up prospective, the low paid income earners would be the first to benefit followed for those who earn more. Employers would also benefit as they would no longer have to pay employers national insurance contributions for those employees exempt from NI.

Council Tax

Currently council tax is charged according to a band; there are eight bands A to H, A being the lowest value. The value of a property determines which band applies to your property. The property values are based on 1991 prices when the scheme was introduced. Firstly, the property values need to be updated to reflect today’s prices and higher bands would be added.

The combination of the extra bands and the abolishment of some council tax reduction rules (implemented April 2013) will mean that council tax receipts for local authorities should increase. As a stimulus for growth and employment any extra income received by local authorities would be used to support small businesses on their high streets by either freezing or reducing business council tax rates.

With all these changes in place, unemployment would fall, local housing costs would decrease and local housing availability would increase; crime would fall as would the prison population. Legal aid and court costs would also drop. The budget deficit would fall and tax revenues would increase

As a result, we, as a country, would be at last moving in the right direction after so many years of weak leadership and poor management.

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