Globalisation:Taxpayers' Alliance

Ross McLauchlan Catherine MacDonald Angela Devine Katie Blair

Introduction

According to Gerry Hassan (2008), think tanks work better for the right than they do for the left. He also argues that think tanks have blurred the boundaries between government and business, resulting in bad policy and government and resulting in the pushing of marketisation, privatisation and corporate influence into unannounced areas of public life. Therefore according to Hassan, ‘after the Thatcher revolution the think tank industry became a means by which the political class outsourced policy and built a new anti-democratic way of consolidating the new consensus which emerged’.

Hassan (2008) therefore argues that ‘we need to ask penetrating questions about whose interests have been aided by the emergence of this new order, who gains from its maintenance, and who is paying for and perpetuating its existence?’ It is Hassan’s argument therefore that this leads towards the corporatisation of politics and the ultimate outsourcing: the privatisation of policy making.

The TaxPayers' Alliance (TPA) is a British, non-partisan, think tank who formed to tackle the lack of an adequate taxpayers’ organisation in the UK. Founded in 2004 by Andrew Allum, Matthew Elliott and Florence Heath, the Taypayers’ Alliance is Britain's independent, non-partisan campaign for low a tax society and better services. The TPA has been at the forefront of campaigns against MPs' expenses abuses, the need for public spending transparency, the growth of the quango state, the costs and wastefulness of the EU, and excessive executive public sector pay, among others. However, many have challenged the non-partisan nature of the TPA through analysis of who funds the TPA, who runs the TPA, and the ways in which the TPA impacts on change directly; which has lead to the assessment that the TPA is closely linked with the Conservative party

The History and Ideology of the Taxpayers' Alliance

The TaxPayers' Alliance (TPA) is a British pressure group who formed to tackle the lack of an adequate taxpayers’ organisation in the UK. Founded in 2004 by Andrew Allum, Matthew Elliott and Florence Heath, the Taypayers’ Alliance is Britain's independent, non-partisan campaign for low a tax society and better services. Starting out as a volunteer operation, the TPA first came to the attention of the national media with the publication of the first “Bumper Book of Government Waste”. The reception of this research, alongside the strong support led to a rapid and sustained expansion. With a full-time team of staff working out of its office in the heart of Westminster, the TPA has firmly established itself as the country's leading voice on transparency and accountability in government; with registered supporters increasing from 5,000 in its first year to a current figure of almost 60,000 supporters. The TPA has also been at the forefront of campaigns against MPs' expenses abuses, the need for public spending transparency, the growth of the quango state, the costs and wastefulness of the EU, and excessive executive public sector pay, among others.

The TaxPayers' Alliance is Britain's independent grassroots campaign for lower taxes. After years of being ignored by politicians of all parties, the TPA is committed to forcing politicians to listen to ordinary taxpayers. The mission of the TPA is "to reverse the perception that big government is necessary and irreversible; to explain the benefits of a low tax economy; to give taxpayers a voice in the corridors of power; to oppose EU tax harmonisation. To this end, the TaxPayers' Alliance intends to: oppose all tax rises; oppose EU tax harmonisation; criticise all examples of wasteful and unnecessary spending; and champion opportunities for votes on tax and spending.

The TPA carries out research into public spending, taxation and broader economic policy. The alliance claims to be a primary source which is used by ordinary people as well as media workers and academics. For example, the TPA may research issues such as MP's Expenses abuses and the cost of wastefullness of the E.U. It claims to be an non-partisan in it's campaigns and research.

Juxtaposed with their campaign against the misuse of public funds, the Taxpayers' Alliance has set up a charity under a different name which can secure subsidies from the taxman worth up to 40% on individuals' donations. Their charitable arm received donations worth £373,230 in 2008 and approved 29 grant proposals amounting to £278,520 with the stated aim "to advance the education of the public" and to "promote for the public benefit research into matters of public taxation, public policy, applied economics and political science". Unusually for a charitable trust, the accounts do not name the grant recipients. The former deputy Prime Minister, John Prescott, stated: "The Taxpayers' Alliance appears to be exploiting the taxpayer rather than protecting their interests as they claim to do; they have now become properly the non-taxpayers' alliance".

Subsequently TPA has recently come under scrutiny from the Charity Commission following these claims that the TPA was using a charitable branch of its organisation, the Politics and Economics Research trust, to fund politically motivated research. When confronted about these allegations, Elliott declined to comment. "I will talk about the work of the Taxpayers' Alliance, I will talk about Christmas, but I don't want to talk about this," he said. "We are confident that our funding arrangements fall within the law and the guidance of the Charity Commission".

The Charity Commission's guidelines on campaigning and political activity state that "an organisation will not be charitable if its purposes are political". It states that trustees must not allow the charity to be used as a vehicle for the expression of the political views of any individual trustee or staff member. Moreover, Despite the alleged non-partisan nature of the TPA, it has been accused of being a Conservative Party "front”; with all three founders and a number of TPA staff members being affiliated with the Conservative Party and have strong links with the Freedom Association. Alliance backers, such as Anthony Bamford, a director of Staffordshire-based JC Bamford, have also donated large sums of money to the Conservative Party. However, the group's leadership has denied such an affiliation with the Conservative party..

The critics of the TPA ask how close it is to the Tory party hierarchy which seems to have adopted some of its radical ideas. "The idea of tearing down the walls of big government as Cameron did in his speech on Thursday is something we have been talking about for years," said its chief executive, Matthew Elliott, yesterday. Furthermore, George Osborne's public sector pay freeze was recommended by the TPA last month and Elliott, who describes himself as "a free-market libertarian", said he had been "banging on about" the idea that no public worker should earn more than the prime minister without the chancellor's approval long before Osborne announced it.

A Guardian investigation has found that a large part of its funds come from wealthy donors, many of whom are prominent supporters of the Conservative party. Sixty per cent of donations come from individuals or groups giving more than £5,000. The Midlands Industrial Council, which has donated £1.5m to the Conservatives since 2003, said it has given around £80,000 on behalf of 32 owners of private companies. Tony Gallagher, owner of Gallagher UK, a property company that gave the Conservatives £250,000 in 2007, is a member of the MIC, as is Christopher Kelly who owns the international haulage firm Keltruck, and Robert Edmiston who owns IM Group, a large car importer. Other businessmen named by the TPA as supporters include spread betting tycoon Stuart Wheeler who gave £5m to the Conservatives before he endorsed the UK Independance party.

Furthermore, Florence Heath, co-founder, "led the student Conservative association at Imperial College for two years as well as the Europe-wide European Young Conservatives, and served on the committee of the local Conservative associations, Conservative friends of Gibraltar." Matthew Sinclair, research director, writes something that was nominated for "the Conservative Home Best Young Conservative Blogger award"." Maria Fort, policy analyst, has "a passion for Conservative politics".

People

• Andrew Allum Chairman and co-founder of the TPA.Allums profile on the TPA website informs us that he "Imperial College where he graduated with a First in Physics." and that "Andrew led the student Conservative groups both in Imperial College and across London and sat on the national committee of the student wing of the party." Finally that between "1998 to 2002 Andrew served as a Conservative member of Westminster City Council. He left the party in 2003, having lost faith that it represented his brand of free market, individualist and compassionate politics."

Andrew Allum is a Partner in L.E.K. Consulting’s London office. Andrew has more than 18 years of consulting experience and is a recognized expert in the operation and financial implications of rail performance regimes and compensation schemes. He joined L.E.K.’s London office in 1992 and is active in our Surface Transport & Logistics and Public Sector practices. Andrew has a Bachelor of Science (first class) in Physics from Imperial College and a Master of Science from Oxford University. Area of expertise are;Aerospace & Defense, Strategy, Mergers & Acquisitions, Financial Services, Public Sector and Surface Transport & Logistics.

• Matthew Elliot Chief Executive and co-founder of the TPA.Matthew Elliot appears to be the main spokesperson for the TPA. Rather than promote their views in a traditional way the TPA “decided the best way to get their message across in the current media and political was to launch a campaign.” that was “packaged and sold to the media” and “specialises in using the government's own data and Freedom of Information requests to winkle out examples of public sector waste; packaging it up into brief, media-friendly research papers, complete with an eye-catching headline figure to give reporters a ready-made "top line".” Mr Elliot states "So when we present them with some primary source material, it's guaranteed to be a good story." .

The Guardian reports that Mr Elliot is to front a campaign on behalf of the Conservative Party against the alternative vote system, NO 2 AV. The Coalition Government plan to hold a referendum in May 2011 on the preferred voting system.The option of revising the traditional first past the post, with the alternative vote system favoured by the liberal democrats. The The Guardian makes further suggestions that Mr Elliots appointment could weaken the Tory Lib Dem coalition because of his “...drive to educate a new generation of Tory MPs and ministers in the benefits of a smaller state and lower tax bill.” .”

Guardian also reports that,“Elliott, who will stand down as the TPA's spokesman in October, has always denied charges that the alliance – which takes a vocal, populist stance against higher taxes, state activity and the EU – is a "Tory front organisation". But both he and key TPA colleagues have close personal links with the party and with the Tory tabloids.”

Despite denials of links with the conservative party Mr Elliot is a regular contributor to CentreRight .com, the web page claims that “CentreRight.com is a hub for the British conservative movement.” It is a ”multiple-authored blog written by some of the best conservative thinkers and commentators around.” CentreRight.com can be found at ConservativeHome.com. The website states that “It's independent of the Conservative Party but supportive of it.” Also that it “aims to provide comprehensive coverage of Britain's Conservative Party.”

Futhermore the conservative home members panel awarded Matthew Elliot and the taxpayers' alliance The One to Watch award "For championing the beleaguered taxpayer at a time when all mainstream political parties are failing to offer significant relief from Britain's record tax burden." in2007.

Matthew Elliot was presented with the Conservative Way Forward ‘One of Us’ award by William Hague in 2007. “The Conservative Way Forward was founded in 1991 to defend and build upon the achievements of the Conservative Party under the leadership of our Honorary President Lady Thatcher, and to adapt the principles of her era in government to modern concerns and challenges.”The website also proclaims “David Cameron has described them as "the largest and most effective pressure group within the Conservative movement today"..”, The website also list a number of celebrated conservative Members of Parliament and former Cabinet ministers as it friends inclusive of; The Rt Hon Baroness Thatcher of Kesteven LG OM FRS,Christopher Chope OBE MP,The Rt Hon David Davis MP,Dr Liam Fox MP,The Rt Hon William Hague MP,The Rt Hon Lord Parkinson of Carnforth,The Rt Hon Lord Tebbit of Chingford CH. Questioning furthermore the links between the TPA and the Conservative Party.

Elliot is also the cheif excecutive of Big Brother Watch,a campaign"Fighting intrusions on privacy and protecting civil liberties"supported by the TPA.

Matthew Elliott was president of libertarian student organisation Hayek Society, London School of Economics in 1999-2000. The aim of this“is to defend and promote classical liberalism and free market economics, while encouraging the free-flow of ideas.”

Consevative Party Conference 2010.Matthew Elliot was a guest of the Freedom Association attending the Freedom Zone fringe event at the Conservative Party Conference in October 2010 in Birmingham. Indeed the Freedom Zone was in fact sponsored by organisations with which Mr. Elliot has close connections and appreciation is expressed on their website, “ …Big Brother Watch and The Taxpayers’ Alliance, all of whom helped to make The Freedom Zone such a successful event this year.” .What is the Freedom Association its website states that it is " a non-partisan, libertarian pressure group dedicated to fighting for individual liberty and freedom of expression. As such, we seek to challenge the erosion of civil liberties and we campaign in support of freedom for the individual and free speech.”

While attending the conference Matthew Elliot was closely associated with Robert Halfron Conservative MP for Harlow,since May the 6th 2010, and who is described as an “ arch Thatcherite” Mr Halfron was responsible for introducing Mr. Elliot at the Freedom Association Dinner held on the 5th of October 2010 as part of the Conservative Party Conference. Besides being a guest of Honour Elliot was an active participant in the fringe events. He chaired a debate on “Taxpayer- Funded Radicalism” the guest speakers were Paul Goodman who is the Executive Editor of the Conservative Home website, Matthew Sinclair Director of the Taxpayers’ Alliance and Douglas Murry founder of The Centre for Social Cohesion a “think tank that speaks out about the threat of radical Islamism.” . Finally, Alex Dean who is the director of Big Brother Watch, a barrister and David Camerons chief of staff. Dean is also a regular writer for Conservative Party website.

• Florence Heath is one of the Co-Founders of the Taxpayers’ Alliance and a grassroots campaigner .She grew up in France and came to London to study at Imperial College where she read Geology and completed a Masters in Petroleum Geology. Heath has documented her political activates in her profile at the Taxpayers’ Alliance, where it is affirms that she “…led the student Conservative association at Imperial College for two years as well as the Europe-wide European Young Conservatives, and served on the committees of the local Conservative associations, Conservative Friends of Gibraltar and the cross-party Youth for a Free Europe. She has also been closely involved with the International Young Democrats Union.”

• Sara Rainwater Operations Director
• Emma Bennett Executive Assistant
• Jennifer DunnPolicy, Analyst, Transport and the Environment
• Lee RotherhamPolicy, Analyst, EU
• Mike DenhamResearch, FellowCampaigns
• Emma Boon, Campaign Manager
• Fiona McEvoy, West Midlands Campaign Agent

• Matthew Sinclair: Director
• John O'Connell: Deputy Research Director.

Funding

Since the Taxpayers Alliance was launched six years ago, it has become the most influential pressure groups in the country and yet it refuses to publish details of its benefactors and how it manages to pay for its £1 million a year operation. An investigation by the Guardian has determined that it is funded largely from wealthy donors, many of whom are prominent supporters of the Conservative party. The Midlands Industrial Council for example, which has donated £1.5m to the Conservatives since 2003, said it has given the Taxpayers Alliance around £80,000 on behalf of 32 owners of private companies.

Tony Gallagher, owner of Gallagher UK, a property company that gave the Conservatives £250,000 in 2007, is also a member of the Midlands Industrial Council. Gallagher Developments owns land with planning consent for six million square feet of commercial development, and an investment portfolio of around 2.7 million square feet of retail parks throughout the country. Gallagher UK therefore continues to be one of the most successful privately-owned commercial and residential property development and investment companies in the UK, with net assets valued at around £500 million.

Another benefactor is Christopher Kelly who owns the international haulage firm Keltruck. He was a member of the Conservative Party's Midlands Regional Finance Board, the West Midlands Council of Business for Sterling (part of the no campaign against the euro) and the Business Council of Vote No (part of the no campaign against the European Constitution). Kelly is also a past member of the Institute of Directors (IoD) and has represented Keltruck within the Confederation of British Industry (CBI).

Sir Anthony Bamford, the JCB tycoon, whose family and company have donated more than £1m to the Conservatives, has, according to a spokesman, also helped fund the Taxpayers Alliance. Bamford has also made smaller gifts of more than £80,000 in his own name to the Conservative Party and donations by JCB Research filed with the Electoral Commission include £175,000 towards the cost of private flights for members of the Shadow Cabinet. In 2004 he stepped down as managing director and handed over daily operations to his chief executive, John Patterson, however he still remains as chairman and the business is valued at about £1.8 billion. Sales at the Staffordshire firm rose 28% to £2.25 billion in 2007 and in 2008 JCB was ranked 34 in the Times Rich List and was worth £1,950 million

Malcolm McAlpine, a director of Sir Robert McAlpine, the construction firm building London's Olympic stadium, has also given an undisclosed amount to the Taxpayers Alliance. Sir Robert McAlpine construction firm also delivers a wide variety of projects through the Government’s PFI, PPP and BSF programmes across the health, education, transport and defence sectors. According to Compass the Government's has wasted spending through its infatuation with the private sector. Recipients of this spending include Taxpayers Alliance supporters such as Malcolm McAlpine, who is Director of private finance initiative provider Sir Robert McAlpine.

David Alberto, co-owner of serviced office company Avanta, is also a supporter of the Taxpayers Alliance and donated a suite in Westminster worth £100,000 a year to Matthew Elliott Chief Executive of the Taxpayers Alliance and his 14 staff explaining that this was due to his opposition against the level of tax on businesses. In the UK it currently manages more than 630,000 sq ft of office space in prime locations in London, the Thames Valley, Manchester and Edinburgh. It also has business centres in New Delhi, and a further two centres in Mumbai. Avanta also has connections with Think London, which is a private-public partnership dealing with foreign direct investment agency for London. Think London’s experts work with government and the business community to help companies access the best people, places and opportunities in the city. Their principal funding partners are the London Development Agency. Alberto also has an offshore family trust but has said that 90% of his wealth is in the UK, where he pays tax.

Other businessmen named by the Taxpayers Alliance as supporters, include spread betting tycoon Stuart Wheeler who gave £5m to the Conservatives before he endorsed the UK Independence party; Sir Rocco Forte, the hotelier; and Sir John Craven, chairman of mining group Lonmin. . Wheeler, Forte and Craven, as well as Chris Kelly and Malcolm McAlpine, are also associated with Global Vision which was launched in March 2007 by Lord Blackwell and Ruth Lea who set out to create a campaign which would offer an alternative to the existing polarised choices of the full European project or pulling out and breaking all ties with Europe altogether.

Funding has soared then from £67,457 in 2005 to more than £1m and the number of supporters has increased 60% this year as a result of the combined effect of the recession and the MPs' expenses scandal. The questions its critics ask therefore is whether it really is an alliance of ordinary taxpayers, and how close it is to the Tory party hierarchy? According to some Labour figures such as MP Jon Cruddas, the Taxpayers Alliance is a Tory front operation run by big powerful business interests who want to resist from paying tax by poisoning the well of public debate around the issue.

Investigations by The Charity Commission have suggested that the Tax Payers Alliance (TPA) have gained funding from 'The Politics and Economics Trust,' a charity it runs separately from the TPA. The Guardian have claimed that the TPA may have used the charity they are linked with to gain tax relief and Gift Aid usually used for good causes, for political research. The alliance is able, through the charity it set up, to gain subsidies of up to 40% of the donation of an individual. In order to do this, it is claimed that the TPA asked business men to fund the alliance through the trust. Under guidelines of the Charity Commission organisations cannot be both charitable and politically motivated.

Chief Executive of the TPA, Michael Elliot, states that the grants obtained through the Politics and Economics Research Trust have funded research which has been looked at with an open mind. He states that none of the grants have gone to any political activity. However, John Prescott, former deputy PM, claims that the TPA are exploitive rather than representative and he has written to the Charity Commission to demand that they suspend the TPA's status as a charity.

Media

In recent years the TPA has became one of the most frequently quoted pressure groups in the UK media. The alliance has approximately ten hits per day in the print media. This includes articles covering MP's expenses, the cost of crime and local government salaries. However, it has been stated by The Independent that the TPA seems to be taking on much of the work load which would be expected to be carried out by journalists. The Independent suggest that the TPA have created their own media profile by writing articles and including their own headlines for newspapers to print. The TPA claims that the reason for this is that journalists have too much work to do and don't have time to read reports from pressure groups.

The Independant goes on to discuss the view of Paul Lashmar of University College of Falmouth who sees a clear connection between the TPA's influence and the every day pressures of news organisations. He claims that news groups no longer have enough time to carry out the necessary extensive research for the articles they write. They need groups like the TPA to take on tasks such as calling round MP's to ask for their individual opinions on an issue.

The TPA construct their stories in a way that will encourage the public to take an interest in the issues they discuss and furthermore encourage the public to be in favour of the TPA. For example, by ranking local councils by which wastes most money the TPA are focussing on creating an interest among a particular group.

According to Matthew Cain the real scandal of the Taxpayers Alliance is the amount of media coverage it receives without proper investigation. The Taxpayers Alliance is reported frequently and prominently. For example The Daily Mail has published 517 articles, The Sun published 207 articles and The Guardian admits to 29 different reports in the last year about the organisation. There are many campaigning organisations like the Taxpayers Alliance. For example, Norman Brennan’s Victims of Crime Trust is another that receives disproportionate and unquestioning coverage. According to Cain ‘these organisations flourish because they peddle stories which go with the grain of journalism, provide quotes which are easily obtainable and strident headlines which fit with the editorial agenda’.

The Taxpayers’ Alliance also offers a small catalogue of books that they themselves have written:

Sinclair, M. 2010, How to Cut Public Spending: (and Still Win an Election), London: Biteback.

An indispensable guide to the kind of steps we need to take to get to grips with excessive public spending, the biggest economic challenge facing Britain today. This book is a must for anyone who wants to understand how the next government could tackle the fiscal crisis.

Kavanagh, T. & Forsyth, F. 2009, Ten Years On: Britain Without the European Union, The Taxpayers Alliance.

Britain has been a member of the EU for a third of a century, enduring all the waste, fraud and red tape that Brussels could imagine. But what would it be like if one day Britain just said 'Enough'? Ten Years On takes us to a world where it has done just that.

Craig, D. & Elliot, M, 2009, Fleeced!: How we've been betrayed by the politicians, bureaucrats and bankers - and how much they've cost us, London: Constable.

This book reveals the facts and figures behind the economic mismanagement that landed us in the situation we are today, and shows how we have been betrayed by our politicians, bureaucrats and bankers. A shocking and depressing but necessary read.

Craig, D. & Elliot, M. 2009, The Great European Rip-Off: How the Corrupt, Wasteful EU is Taking Control of Our Lives, London: Random House Books.

A devastating indictment of EU waste.

Elliot, E. & Rotherman, L. 2007, The Bumper Book of Government Waste 2008: Brown's Squandered Billions, 2nd Edition, Hampshire: Harriman House.

In this new edition of "The Bumper Book", Matthew Elliot and Lee Rotherham have unearthed a staggering £101 billion of government misspending - all paid for by you, the taxpayer.

Elliot, M. & Rotherman, L. 2006, The Bumper Book of Government Waste: The scandal of the squandered billions from Lord Irvine's wallpaper to EU saunas, Hampshire: Harriman House

In this book, the authors have highlighted a myriad of examples of Government waste and useless spending, taken from thousands of examples held on file. The figures have been compiled from independent reports, media coverage and official statistics.

Connections of the Taxpayers' Alliance

The Taxpayers Alliance is also part of Stockholm Network, a think tank that promotes radical free market ideology, in which the Mont Pèlerin Society played a key role. This international network of neoliberal intellectuals was founded by Friedrich von Hayek in 1947 and has gradually expanded to over 1000 members from across the globe.

The Stockholm Network was founded in September 1997 and was originally run by the Swedish think tank Timbro. It claims to bring together over 120 think tanks from across Europe whose member groups are mainly dogmatic free-marketeers who want to introduce a flat tax, put an end to social protection systems and privatise healthcare whilst at the same time attacking socially or environmentally progressive legislation. These think tanks for example are skeptical of the seriousness of climate change, and they oppose environmental regulations whilst promoting free-market pseudo-solutions to almost every problem.

The Stockholm Network was set up by Helen Disney and Nicole Gray Conchar, formerly of right wing American think tank, the Cato Institute. Ms Conchar is also linked to the pro-corporate Stockholm Network member the International Policy Network which is known to be funded by Exxon and widely believed to be funded by Pfizer, Merck and Microsoft.

It is also understood that umbrella organizations such as the Atlas Economic Research Foundation, the International Policy Network and/or the Stockholm Network can be used to produce yearly global products like the Economic Freedom of the World Index in order to channel the neoliberal draft constitution developed by the neoliberal European Constitutional Group.

Policy Exchange is an independent, non-partisan educational charity who works with academics and policy makers from across the political spectrum. It is particularly interested in free market and localist solutions to public policy questions. Their research interests include using centre-right means to progressive ends, re-inventing Government and strengthening society with a central focus on the economy. Their work involves detailed ideas with practical impact: proposing policies that politicians can actually implement. It is highly commended by the Telegraph, George Osborne MP, Michael Gove MP and the Mayor of London, Boris Johnson.

Policy Exchange has been reported as David Cameron’s favourite think tank and recently launched an article in the Guardian headed “The Spirit Level is not on the level” . This article highlighted a scathing report called ‘Beware False Prophets’ in critique of Professor Richard Wilkinson & Professor Kate Pickett’s book ‘The Spirit Level’, an analyses of income inequality and health and social problems claiming that it is seriously flawed in its analysis assumptions and conclusions. This report was written by Peter Saunders, Professor Emeritus at University of Sussex who works as an independent researcher and writer, focusing on welfare reform, social mobility, income inequality and poverty, and publishing with think-tanks including Policy Exchange.

Responding to this report, Professor Richard Wilkinson & Professor Kate Pickett said that they welcomed open debate but that Peter Saunders analysis contained serious methodological errors. According to Professors Wilkinson and Pickett, Saunders misunderstands the evidence that shows that almost everyone does better in more equal societies and that “all analyses of income inequality and health and social problems in The Spirit Level have been either: (a) replicated by other researchers, in some cases hundreds of times, or (b) published in peer-reviewed academic journals This is fully referenced in The Spirit Level, but Peter Saunders is either unaware of this very large body of evidence or has chosen to ignore it” .

Richard Murphy director of Tax Research LLP has commented that ‘it is further example of the sheer nastiness of the Tory party – the left of the Tory party on this occasion. These people hate those not on above average income. It is clear they not only want them to suffer inequality and all that goes with it – but to increase that inequality – as the plan they put forward in the budget to create mass unemployment proves’ .

The Impact of the Taxpayers' Alliance

Richard Wilkinson and Kate Pickett’s book, ‘The Spirit Level’, presents the argument that income inequality is the cause of all social problems such as: murder; obesity; teenage pregnancy; and depression. The authors also take the argument beyond this, going further to suggest that inequality even limits life expectancy itself. The book, which concludes that either taxes must rise on the rich or their incomes must fall to increase equality, received an overwhelming level of cross-party support .

Despite this conclusion, the Taxpayers Alliance, whose flagship ideology is for the campaign of lower taxes and lower spending, issued a report to oppose the ideas put forth in the Spirit Level . Their report argues that ‘the Spirit Level makes the claim that life expectancy; mortality and health in industrial societies are heavily impacted by stress caused by income inequality…however, using international standard statistics regarding income distribution, life expectancy and health from the UN, OECD and WHO, it is difficult to support the claims made regarding international health and mortality comparisons in The Spirit Level’. In addition, they argue that ‘all empirical assertions and descriptions of the state of science made in The Spirit Level should therefore be treated with caution and the other claims in the book require careful scrutiny’. The TPA research director, Matthew Sinclair criticised the book, by arguing that "on almost no measure does the central claim of the Spirit Level, that income inequality decreases life expectancy, stand up to scrutiny," .

Moreover, the Policy Exchange, often described as Cameron's favourite think-tank, produced its own report: ‘Beware False Prophets’. Its author, sociologist Peter Saunders, said The Spirit Level could "contaminate an important area of political debate with wonky statistics and spurious correlations ... Very little of Wilkinson and Pickett's statistical evidence actually stands up, and their causal argument is full of holes" . Despite the timing and findings of both the TPA and the Policy Exchange reports, the Taxpayers Alliance denies acting in alliance with the Policy Exchange.

Richard Wilkinson responded that: "It is now something for the left and we would rather have avoided that. People on the right will feel relieved knowing they don't have to treat this seriously and will be happy to know it has been rubbished." .

The Other Tax Payers' Alliance

The Other Tax Payers Alliance are a left-wing group who oppose the ideas of the Tax Payers Alliance. They state that what Britain needs is fairer, more proportionate taxes rather than lower ones. For example they support higher taxes for the most highly paid and the closing down of tax havens. The other tax payers alliance does not receive funding and is run by volunteers. They do not suggest that they are a representation of the views of all tax payers. The Other Tax Payers Alliance claim that the TPA is a right leaning group who do not represent the majority of tax payers. Although they claim to represent ordinary tax payers they also state that they have 20,000 supporters. This makes up only 0.04% of the adults living in Britain.