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 TPA 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.

The page begins with an outline of the think-tank, highlighting its history and Ideology, aims and goals. This is followed by an overview of their manifesto; which is compared and contrasted to that of the Conservative party. The page continues on to outline some of the key players behind that Taxpayers’ Alliance, from founders, directors, analysts and researchers. Further to this, the page looks at who actually funds the Taxpayers’ Alliance; the aim of which is to create some transparency in terms of who donates and where their political loyalties lay.

The media have played a key role in the development of the Taxpayers’ Alliance and, as such, the page refers to ways that the organisation has been cited in the Media. Also, the page offers some of the publications by the Taxpayers’ Alliance – with an overview of each text – in order to show some of the independent research that the Taxpayers’ Alliance have created in certain areas.; as well as to highlight their research into public spending, taxation and broader economic policy. The Taxpayers’ Alliance is also broadly connected to other organisations with certain political interests and affiliations, which are highlighted within the page.

The page also provides an alternative organisation that exists alongside the Taxpayers’ Alliance, but with opposing ideas. Finally, the page looks at the criticisms of the Taxpayers’ Alliance and concludes with a challenge toward their non-partisan nature; particularly alluding toward their close link 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.[3] 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.[4] 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.[5] 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.[6] 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.[7] 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.[8] 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.[9]

The various texts produced by the Taxpayers’ Alliance, as well as media related articles, would suggest the Taxpayers’ Alliance are ‘Euro-sceptic’ in their view toward European Union spending and funding and the relationship between the UK and the EU.

The TaxPayers' Alliance has published its manifesto. Many of its pledges will cause the Tory party no headache but some are in direct conflict with the ambitions of a Conservative government.

SOME TPA PLEDGES CONSISTENT WITH TORY POLICY:

• Cut middle class welfare; • Cut corporation tax to 15% or lower (I expect George Osborne to make big steps towards this if he becomes Chancellor); • Abolish inheritance tax (more sensibly the party is pledged to do this but only for non-millionaires); • Introduce elected police chiefs (this is already Chris Grayling's flagship policy); • Publish full data on spending (the Tories have promised disclosure of all Whitehall contracts over £25,000 - Stephan Shakespeare of the Network for the Post-Bureaucratic Age has already warned that this will lead to lots of budgeting things at £24,995!); • Recall and citizens' initiatives; • Payment-by-results rehabilition regime in prisons; • School choice .[10]

SOME TPA PLEDGES THAT WILL PUSH THE TORIES TO GO FASTER THAN THEY MIGHT NATURALLY TRAVEL:

• Abolish the 50p tax rate; • Abolish a range of quangos; • Reform the NHS to make it less centralised.[11]

SOME TPA PLEDGES THAT DIVERGE FROM TORY GOVERNMENT:

• The TPA want abolition of taxpayer subsidy of the trade unions. David Cameron intends to continue with the union modernisation fund. • Abandon the 2020 renewables target and the EU's Emissions Trading Scheme. • Drop the 0.7% target for foreign aid spending. • Hold a referendum on fundamental renegotiation of the UK-EU relationship.[12]

People

Andrew Allum Chairman and co-founder of the TPA. Allums profile on the TPA website informs us that he attended the "Imperial College where he graduated with a First in Physics." It also states 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, the TPA website tells us 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."[13] 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.[14]

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." . [15] 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. [16]The Guardian makes further suggestions that Mr Elliot’s appointment could weaken the Tory Lib Dem coalition because of his “...drive to educate a new generation of Tory MP’s and ministers in the benefits of a smaller state and lower tax bill.” [17]

The 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.”[18] Despite denials of links with the Conservative party Mr Elliot is a regular contributor to CentreRight.com, the TPA 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.”[19] CentreRight.com can be found at ConservativeHome.com. The TPA 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.”[20]

Futhermore, the conservative home members panel awarded Matthew Elliot and the TPA with 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." In 2007.[21]

Matthew Elliot was also presented with the Conservative Way Forward ‘One of Us’ award by William Hague in 2007.[22] “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".[23], The website also lists a number of celebrated conservative Members of Parliament and former Cabinet ministers as friends. This is 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. This furthers the question of 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.[24]

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.”[25]

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.” [26]. The Freedom association 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.” [27]

While attending the conference Matthew Elliot was closely associated with Robert Halfron Conservative MP for Harlow, since May the 6th 2010, 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. [28] 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.” [29]. Finally, Alex Dean who is the director of Big Brother Watch, a barrister and David Cameron’s chief of staff. Dean is also a regular writer for Conservative Party website.[30] Matthew is an advisor on a variety of Boards. One example is the Cobden Centre who state, that ‘’with honest money and free trade, international peace and social progress will follow. We endorse Cobden’s view that: Peace will come to earth when the people have more to do with each other and governments less.” [31] Other boards where Elliot holds a position; the Advisory Council of the European Foundation, Freedom Week and the Young Briton’s Foundation and on the Advisory Committee of the New Culture Forum. [32]

Florence Heath: Co-Founders of the TPA and 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 affirmed 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.”[33]

Matthew Sinclair: Director Matthew Sinclair subsequent to joining the TPA in May 2007, became Research Director in December 2008 and “has produced studies on public spending, the National Health Service, trade unions, crime, big government projects, financial services regulation, the dynamic effects of tax cuts, hate education in the Palestinian territories, taxpayer funded lobbying and environmental policy.” [34] Matthew Sinclair studied economics and economic history at the London School of Economics where he was involved in student politics, arguing the case for economic liberalism in a highly anti-capitalist environment. Since joining, the TPA Sinclair has written numerous reports on an assortment of issues ranging from ‘Beyond the Dome’ (July 2007) which stated that Government projects are £23 billion over budget, to The Cost of Crime in London, (April 2008) and How inept regulations and poor policy decisions drove the financial crisis. (November 2008). His most prominent work is his recent book “How to Cut Public Spending (and Still Win an Election)”.The TPA state that, “The book provided the most comprehensive analysis available of the UK's fiscal situation and the decisions needed to deliver spending cuts.” [35] Matthew is credited by the TPA as playing a key role in promoting the TPA presence in the media. Mr. Sinclair frequently contributes to ConservativeHome’s CentreRight and the US energy policy blog MasterResource. [36]

John O'Connell: Deputy Research Director An important aspect of John O’Connell work at the TPA as deputy research director is focused government institutions with a specific interest in quangos, local government waste and productivity of the public sector. Some of O’Connell’s research includes; Council Pensions: The £53 billion black hole, Public Sector Rich List 2009, Out of Control: How the Government overspends on capital projects, ACA to YJB: A Guide to the UK's Semi-Autonomous Public Bodies 2007-08 and How to save £50 billion: Reducing spending for sustainable public finances. He is also the lead researcher in the TPA’s annual audit of public bodies which lays the ground work for many of their campaigns. [37]

Sara Rainwater: Operations Director Sara Rainwater Joined the TPA in 2007 to oversee the administration and management of both the London and Birmingham office. [38] Sara is American and has had a keen interest in politics from an early age. She has completed internships in “US Department of State – at the US Mission to the United Nations and the US Embassy”.[39] Like Many of those associated with the TPA Rainwater has studied at the London School of Economics. The TPA website states that Rainwater has an established management career were she has worked for Ruth Lea and Lord Blackwell through Global Vision. She has also organised high profile events for “international dignitaries such as Baroness Thatcher of Kesteven, President Vaclav Klaus of the Czech Republic, former French President Valery Giscard d’Estaing and former US Ambassador to the UN John Bolton.” [40] Emma Bennett: Executive Assistant

Jennifer Dunn: Policy Analyst, Transport and the Environment In her role as Policy Analyst of Transport and the Environment Jennifer Dunn examines the benefits both economic and social of owning a car focussing on environmental issues raised by the increasing car ownership and the safety issues connected to vehicle use. [41] Dunn is originally from Canada and is also a former student of the London School of Economics. Her recent reports include “Do you really need to take that flight?” The Environment Agency’s hypocrisy on short haul flights, Parking Fines: the £328 million enforcement industry and Relative Transport Spending.” [42]

Lee Rotherham: Policy Analyst, Dr Lee Rotherham has worked extensively with the Consevative Party. His profile state that he has “advised three successive Shadow Foreign Secretaries.” [43]Rotherham was employed as chief of staff to Rt Hon David Heathcoat-Amory MP. His main area of expertise is European Politics and he has been involved in research for “Westminster Group of Eight,” Eurorebels and is an active campaigner for The Bruges Group. Dr. Rotherham co-wrote Bumper Book of Government Waste in 2008.[44]

Mike Denham: Research Fellow Campaigns Denham Area of expertise lies in the study of public spending. A former treasury economist for the Consevative Party during the 70’s and 80’s. He now scrutinizes public spending on behalf of the TPA. [45]

Emma Boon Campaign Manager Emma Boon joined the TPA in Feburary 2010, formerly a journalist Emma is said to have relied on the TPA as a reference for statistics and figures on government spending.[46] Boons Key role at the TPA is to communicate the organisations work to the media. [47]

Fiona McEvoy West Midlands Campaign Agent Fiona McEvoy employed in the TPA’s new regional branch in the West Midlands (WMTPA) that opened in July 2007.The TPA reports that the WMTPA “Is building a grass-roots movement that can develop new policy ideas and communicate them to the people of the West Midlands.” [48]Prior to her employment at the WMTPA McEvoy was employed by “Spicerhaart’’ as the UK’s largest asset manager, where she dealt first hand with housing repossession and witnessed the escalating numbers of people unable to cope with the financial burden.” [49] Fiona is also a member of the ‘The Next Generation’ at the Adam Smith Institute. [50]

Funding

Since the Taxpayers Alliance (TPA) was launched six years ago, it has become the most influential pressure group 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 TPA around £80,000 on behalf of 32 owners of private companies. [51]

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. [52] 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. [53]

Another benefactor is Christopher Kelly who owns the international haulage firm Keltruck. [54] 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). [55]

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 TPA. [56]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. [57] 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 [58]

Malcolm McAlpine, a director of Sir Robert McAlpine, the construction firm building London's Olympic stadium, has also given an undisclosed amount to the TPA. [59] 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. [60] According to Compass the Government has wasted spending through its infatuation with the private sector. Recipients of this spending include TPA supporters such as Malcolm McAlpine, who is Director of private finance initiative provider Sir Robert McAlpine. [61]

David Alberto, co-owner of serviced office company Avanta, is also a supporter of the TPA and donated a suite in Westminster worth £100,000 a year to Matthew Elliott and his 14 staff explaining that this was due to his opposition against the level of tax on businesses. [62] In the UK Avanta 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. [63] Alberto also has an offshore family trust but has said that 90% of his wealth is in the UK, where he pays tax. [64] 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 Independence party; Sir Rocco Forte, the hotelier; and Sir John Craven, chairman of mining group Lonmin. [65] Wheeler, Forte and Craven, as well as Chris Kelly and Malcolm McAlpine, are also associated with Global Vision [66] 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. [67]

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. [68] Investigations by The Charity Commission have suggested that the TPA have gained funding from 'The Politics and Economics Trust,' a charity it runs separately from the TPA. [69] 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. [70] 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. [71]

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.[72] 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. [73]

According to Matthew Cain the real scandal of the TPA is the amount of media coverage it receives without proper investigation. The 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 such as 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’. [74]

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. [75] The TPA therefore penetrates and uses the media to attack the public sector by issuing stories about government departments paying so much for office equipment, benefits scandal, migrant stories, NHS spending on paper clips, local councils spending on environmental improvement managers and so on. [76] For example the Express newspaper reported on Britain’s public sector sick note culture where research showed that workers at some of the biggest councils take eleven days off sick every year. TPA spokesman Mark Wallace said the data was “absolutely astounding” and added: “The really worrying thing is council staff are taking far more days off than the private sector. Either council red tape or bad management is making people ill or managers are letting staff get away with throwing ‘sickies’. [77] The taxpaying public are constantly told that the public sector who employ taxpaying members of the public are providing unnecessary services that are a burden on the public. However, the public are not told what will replace these organisations and services once they have gone. ‘This is nothing to do with an alliance of taxpayers. This is everything to do with re-moulding society in a way that would benefit the few to the detriment of the many’. [78]

In response to the exceptional amount of media coverage the TPA receives, The Other Taxpayers Alliance has provided an ironic journalist tool that instantly generates quotes; just select the type of expenditure and your location. This lighthearted gimmick raises the serious issue of how easily accessible the Taxpayers Alliance are to Journalist and how heavily the press rely on them to provide instant responses. [79]

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.[80] 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.[81] 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.[82] 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.[83] 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.[84] 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.[85]

Furthermore, over a number of years the TaxPayers' Alliance has produced pioneering research into public spending, taxation and broader economic policy. In areas such public sector remuneration and quangos, TPA research now represents the definitive primary source, used by the media, academics and the public. As such, the TPA have created an archive of independent research articles. This archive contains all the research and polling carried out by the TaxPayers' Alliance, organized by both topic or date; which can be viewed via this link: http://www.taxpayersalliance.com/archive/research.html .[86]

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 Tax Payers Alliance is said to have connections with the Conservative Party. According to The Other Tax Payers Alliance the TPA is a group based on right wing ideologies. Its academic advisery council is made up of many who support Conservative policies. For example Eamonn Butler and Madsen Pirie of the Adam Smith Institute as well as former Institute of Directors policy head Ruth Lea. It has been stated by Next Left that Mathew Elliot made a presentation in Ottawa, Canada about the rise of Conservative Party activity since 1997. Next Left suggest in their blog that Elliot is, in making the presentation, defining the alliance as Conservative. This contradicts claims in the media by the alliance that they do not have a party preference. Furthermore, the BBC's Helen Boaden has stated that she does not think the TPA are non-partisan. She said she would discuss ways in which to avoid reporting the alliance as a non-partisan organisation in the future. This was in reply to a letter written by John Prescott who complained that the BBC had been reporting the TPA as impartial. It is suggested by many that the TPA are a Conservative front and therefore a change in the way they are reported by the BBC could be seen as necesary.

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.[99] They 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. [100]

Criticisms of The Taxpayers' Alliance

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.[101] 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".[102]

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.[103] 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".[104]

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.[105] 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.[106].

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.[107] "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.[108] 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.[109]

According to The Other Tax Payers Alliance the TPA is a group based on right wing ideologies. Its academic advisery council is made up of many who support Conservative policies. For example Eamonn Butler and Madsen Pirie of the Adam Smith Institute as well as former Institute of Directors policy head Ruth Lea. [96]

It has been stated by Next Left that Mathew Elliot made a presentation in Ottawa, Canada about the rise of Conservative Party activity since 1997. Next Left suggest in their blog that Elliot is, in making the presentation, defining the alliance as Conservative. This contradicts claims in the media by the alliance that they do not have a party preference. [97] Furthermore, the BBC's Helen Boaden has stated that she does not think the TPA are non-partisan. She said she would discuss ways in which to avoid reporting the alliance as a non-partisan organisation in the future. This was in reply to a letter written by John Prescott who complained that the BBC had been reporting the TPA as impartial. It is suggested by many that the TPA are a Conservative front and therefore a change in the way they are reported by the BBC could be seen as necesary.[98] 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.[110] 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.[111]

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".[112]

In a bid to show that the EU is a waste of tax payer’s money, the Taxpayers’ Alliance may finally have over-reached them selves. They have just launched a cinema advert claiming the EU costs each UK citizen £2,000 per year. As Left Foot Forward show, the actual figure is £15 per year according to the EU Budget. That’s not a typo: the TPA are genuinely claiming that each UK taxpayer pays £1,985 more than the figure stated by the EU.[113]

This is not the first time that the Taxpayers’ Alliance have been accused of misusing information in order to promote their own self interest. The group have previously said its research revealed for the first time the "huge" amounts unions have received in direct grants and paid staff time from public sector organisations, departments, quangos, councils, NHS Trusts and fire authorities in the last two financial years.[114]

The report said that unions received £85.8 million from public sector organisations in 2009-10, including £18.3 million in direct payments from public sector organisations and an estimated £67.5 million in paid staff time. The total is up 14% from 2008-09, when trade unions received £76.1 million from public sector organisations, said the report.[115] Direct payments included £13 million in 2008-09 and £14.9 million in 2009-10 paid by the Department for Business, Innovation and Skills through the Union Learning Fund and the Union Modernisation Fund, according to the Alliance.[116] Matthew Sinclair said: "Trade unions are lining up to fight vital cuts in public spending and threatening strikes that could cause massive disruption for ordinary families. By financing their other work, like representing and recruiting members, taxpayers' money frees up union funds for political contributions and expensive campaigns.[117] Many have argued that there is a certain amount of hypocrisy involved here. The TPA is seeking to delegitimize trade union opposition to those cuts by misrepresenting it as being based upon self-interest, and implying that there is a layer of trade union activists lazing around at public expense. This attempt to weaken ideological opposition to the cuts is separate from their more narrowly focussed attack on trade union organisation itself in the public sector, which of course also has an effect on the capability of unions to defend services and jobs.[118]

In fact, trade unions in both the private and public sector lead to better working environments, improved industrial relations, and save employers’ money.[119]

The overriding fallacy of the Tax payers’ alliance is to only see public expenditure as an item on the deficit side of a balance sheet, without taking into account the wealth creation, improved social capital, and greater efficiency that results from that expenditure, and which appears in the credit column on the balance sheet. In exactly the same way, they see the time spent on trade union activity only as a cost to business and the public sector, without taking into account the improved efficiency, better working environment, and the moral value of fairness and mutual respect at work which trade unions provide.[120]

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 .[121]

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 .[122] 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’.[123] 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’.[124] 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," .[125]

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" .[126] 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.[127]

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." .[128]

Conclusions

In conclusion this page has looked at the Taxpayers’ Alliance a British, non-partisan, think tank that formed to tackle the lack of an adequate taxpayers’ organisation in the UK. It outlined its history and Ideology, aims and goals. It also looked at the Taxpayers’ Alliance manifesto; and compared and contrasted it to that of the Conservative party. The page then outlined some of the key players behind the Taxpayers’ Alliance, from founders, directors, analysts and researchers. Further to this, the page looked at who actually funds the Taxpayers’ Alliance; the aim of which was to create some transparency in terms of who donates and where their political loyalties lay.

The role of the media and publication of the Taxpayers alliance was also highlighted bringing to light their research into public spending, taxation and broader economic policy. The Taxpayers’ Alliance’s political interests and affiliations to other organisations were also highlighted within the page. The page also provided an alternative organisation that exists alongside the Taxpayers’ Alliance, but with opposing ideas. Finally, it highlighted criticisms of the Taxpayers’ Alliance and illustrated its impact with reference to Richard Wilkinson and Kate Pickett’s book, ‘The Spirit Level’, which was criticised by TPA research director, Matthew Sinclair who argued that it did not stand up to scrutiny," This therefore challenges their non-partisan nature; particularly alluding toward their close link with the Conservative party.

From the evidence collected it appears that the Taxpayers’ Alliance is heavily associated with the Conservative Party and with neoliberal ideology and neoliberal organisations, whilst their funding mostly comes from wealthy donors who promote their own self interests. The Taxpayers’ Alliance appears also to be heavily opposed to the European Union, the public sector and trade unions. They use the media for their own self interests and promote neoliberal ideology. The Taxpayers’ Alliance therefore seems to be detrimental to the many ordinary taxpaying people whom they are supposed to support. It can there be argued that the Taxpayers Alliance are only there to benefit the elite.