Taxpayers' Alliance

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The Taxpayers' Alliance (TPA) is a right-wing single-issue think tank and lobbying group advocating "lower taxes and reformed public services". On 19 September 2007, the Hayek Society, a LSE right-wing group, circulated a job description to its members for internships at TPA.

In a March 2009 presentation TPA Chief Executive Matthew Elliott and Tim Montgomerie described the TPA as part of the infrastructure of the conservative movement in Britain.[1]

Susie Squire formerly of the Stockholm Network acted as the TPA campaign manager until 2010 when she left to work as an advisor to Iain Duncan Smith.[2]

History

Taxpayers' Alliance Ltd Company Details

The Taxpayers' Alliance was set up as a limited company[3] in 2003 by Matthew Elliott, a 25-year-old political researcher for Conservative MEP Timothy Kirkhope. According to the Guardian Elliott had been impressed by Republican grassroots campaigns to cut tax and spending he had seen in America – particularly the work of Grover Norquist who campaigned against Hillary Clinton's healthcare plans during Bill Clinton's presidency. He argued:

'Up until that point Britain didn't need a taxpayers' group because we had the Conservatives, but then they stopped talking about it and so I saw a niche,'.

The co-founders of the Taxpayers alliance were Elliot’s wife Florence Heath a who was a Conservative Party activist[4] while at University , she now works as a geologist for petroleum giant Shell[5]. Her father Alexander Heath is also a director of the TPA, his appointment led to controversy when it emerged that he does not pay any UK Tax. The other founding member is former Conservative Party member for Westminster city council Andrew Allum.[6][7]

The conservative connections of the Taxpayers' Alliance founders

First Event

The first event held by the TPA was a joint venture with the Institute of Economic Affairs held on the 3-February-2004. The seminar was entitled Tax Harmonisation Versus Tax Competition: Which Promotes Prosperity?.[8]

Funding & Transparency

The Taxpayers’ Alliance argue for greater transparency from government bodies[9] However when asked for a full list of funders and donors, Emma Bennett responded on their behalf:

The TPA has is [SIC] entirely funded by private, individual donations from many of the nearly 60,000 supporters we have across the UK. We have never received, nor will receive, funding from the taxpayers' purse. Our latest accounts are available on the Companies House website.[10]

The 60,000 members Bennett refers to are people who have signed up to an online mailing list on the Taxpayers’ Alliance website.[11] However the bulk of their funding comes from 'wealthy donors, many of whom are prominent supporters of the Conservative party'. According to an investigation by the Guardian:

Sixty per cent of the 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'.[12]

Other businessmen in the MIC who fund the Taxpayers’ Alliance include JCB tycoon Anthony Bamford who has close links to the Conservative Party and visited India with David Cameron in 2006.[13][14] Taxpayers’ Alliance funding rose from £64,457 in 2005 to more than £1 million in 2009.[15] Since the TPA has received such a large spike in funding they have begun publishing only abbreviated accounts which withhold income and expenditure.[16]

A large amount of the Taxpayers’ Alliance income comes from a research charity entitled the Politics and Economics Research Trust, formerly known as the Taxpayers’ Alliance Research Trust. The main contact given for this wing of the Taxpayers’ Alliance is multimillionaire Patrick Barbour who sold his Barbour Index business in 1999 for £22 million.[17]

According to the Charity Commission the Politics and Economics Research Trust spent £564,947 between 2007 and 2009.[18] Of this amount £544,000 was spent on research grants and 90% (£505,000) of this was given to the Taxpayers’ Alliance. The arrangement prompted complaints from the Guardian newspaper and Labour Party MP John Prescott.[19][20]

According to campaign group The Other Taxpayers Alliance, the Companies House information held on the TPA is sparse, they claim that:

It’s simply not true that all political organisations are secretive about their funding. Most declare their income and expenditure, and some give a break-down of income sources, including donors. The TPA does neither. It publishes abbreviated accounts which means income and expenditure are withheld. The last time it published full accounts was in 2006, when it recorded an income of £130,000. But the current organisation has ten full-time staff across two offices, which suggests either its income has jumped substantially or it is loaded with debt.[21]

Tax Controversy

In 2009 The Guardian reported that TPA director Andrew Heath does not pay any UK tax.[22]

Political Connections & Network

Sunder Katwala of the Fabien Society argued that the Taxpayers’ Alliance were both partisan ‘small c’ conservatives and supporters of the Conservative Party , Matthew Elliott accused him of not being able to understand capital letters and denied links to the Conservative Party arguing that:

The phrase “conservative movement” or “conservative” is used a lot to describe the broad, centre-right, movement in the United Kingdom. Of course, some people think that doesn’t reflect the libertarian strand in the British centre right properly, but for the lack of a better term “conservative” works’.

However all of the founding members of the Taxpayers’ Alliance have links to the Conservative Party.[23][24][25]

Despite these links Elliott denies any political party partisanship stating:

Yes, we believe in lower taxes, reformed public services and better value for taxpayers' money. We are open about being of the centre-right – we believe in low taxes, public sector reform and personal freedom. But the idea that that puts us in cahoots with the Tories is laughable’[26]

The argument that the Taxpayers’ Alliance share close links with the Conservative Party is strengthened further by looking at which political party’s the TPA donors also give money to. Most of the known Taxpayers’ Alliance funders also donate money to the Conservative Party, two of them donate to UKIP and one, Tony Gallagher, has given donations to both the Labour Party and the Conservative Party. The Political Party Donations made by Taxpayers’ Alliance funders. There are clear links between the Conservative Party and both the founders and funders of the Taxpayers’ Alliance. In December 2008 Susie Squire from the Taxpayers’ Alliance was asked if the Taxpayers’ Alliance was 'secretly Conservative?', she responded by saying: ‘that’s outrageous! That’s just absolutely outrageous! ...we don’t have a party preference. Yes of course we have advisors and we have a board – any think tank worth its salt does. We’ll talk to anyone’.'

Squire left the Taxpayers Alliance in May 2010 to work as an advisor to the Conservative Party's Iain Duncan Smith.  While many of the Taxpayers’ Alliance staff and activists have prior links with the Conservative Party, Susie Squire’s move into government is an example of the ‘revolving door’ moving the other way. Squire moved from being a media lobbyist at the corporate funded  Stockholm Network, then on to the Taxpayers’ Alliance before moving on to become a government special advisor. In 2007 she attended the Centre for the New Europe’s ‘Capitalist Ball’ . She was heavily involved in the Taxpayers’ Alliance ‘Great EU Rip Off’ campaign which represents one of the alliances four key campaigns.
  Revolving Door: Susie Squire as a media lobbyist for the Stockholm Network and the Taxpayers’ Alliance. She attended the Centre for the New Europe’s ‘Capitalist Ball’ in 2007. These roles were prior to joining the government.  

The close links between the Taxpayers’ Alliance and the Conservative Party are of interest to understanding the organisation and led to Labour MP John Prescott describing the Taxpayers’ Alliance as a ‘Tory Front’ in 2009. However this description of the Taxpayers’ Alliance is too simplistic and a clearer understanding of their purpose can be understood by looking at the think tank network surrounding the Taxpayers’ Alliance. Susie Squire is not the only connection between the Taxpayers Alliance and the Stockholm Network, the TPA were given an award by the Stockholm Network in 2007 . Patrick Barbour who runs the charitable wing of the Taxpayers’ Alliance also helped to fund the Stockholm Network between 2006-2008 . Barbour has been politically active as a Eurosceptic since at least the early nineties when he helped to fund the ‘Bruges group’, a think tank representing the Eurosceptic right of the Conservative Party. He has also given funding to UKIP through the Eurosceptic think tank ‘Global Britain’. Malcolm Pearson the former leader of UKIP also sat on the board of the Taxpayers’ Alliance research wing (Politics and Economics Research Trust) until 2009. Barbour is also involved with a range of conservative think tanks including Reform where he was one of the three founders, Civitas, Global Vision and the Young Britons’ Foundation .

Barbour’s mixture of Eurosceptic and free market interests are telling about the ideological agenda behind the Taxpayers’ Alliance. As well as Patrick Barbour many of the Taxpayers’ Alliance donors have Eurosceptic political connections. Eurosceptic businessmen funding the Taxpayers’ Alliance include Malcolm McAlpine who also funds Global Vision , Stuart Wheeler who helps to fund Global Vision and UKIP and Rocco Forte who has helped to fund the Conservative Party and was also involved in funding the Bruges Group .


The Eurosceptic connections of the Taxpayers’ Alliance funders. Further light can be shed on these influences by looking at the political connections and networks of the Taxpayers’ Alliance. In the aftermath of the 2010 general election the Taxpayers’ Alliance had a roundtable meeting to discuss the Conservatives return to power. The meeting was attended by Eurosceptic think tanks Global Vision and Open Europe, climate change sceptics the Global Warming Policy Foundation and many free market think tanks including the Centre for Policy Studies, the Institute of Economic Affairs and the Freedom Association as well as a representative from big business like the Institute of Directors and British Petroleum. It is the influence of these think tanks that appears to shape the Taxpayers’ Alliance agenda more than any connection with the Conservative Party. This can be seen by exploring the nature of the Taxpayers’ Alliance research and campaigning activities.

Research & Campaigning

Media Coverage

Independence

In December 2008 Susie Squire from the TPA was asked by Nick Ferrari on his LBC Breakfast Radio Show if the Taxpayers Alliance was 'secretly Conservative?', she responded by saying:

I’m sorry, I’m sorry, I can’t have that – that’s outrageous! That’s just absolutely outrageous!' adding 'we’re totally independent, we talk to everyone. I mean, God, I was in Wales at the end of last week, giving evidence on MPs’ expenses to a cross-party independent panel in the Welsh Assembly. We talk to everyone who wants to talk to us. We produce research that goes out to many MPs, cross-party, that goes out to journalists. We don’t have a party preference. Yes of course we have advisors and we have a board – any think tank worth its salt does. We’ll talk to anyone.'[27]

Squire left the Taxpayers Alliance in May 2010 to work as an advisor to the Conservative Party's Iain Duncan Smith.[28]

Criticism

Conservative councillor for Ealing and Northfield Phil Taylor described his relationship with the TPA in February 2009:

I have a bit of a love-hate relationship with the TaxPayers’ Alliance. I was involved with them in their very early days. I helped them with their initial fund raising and organising but I got disillusioned because their first publication, The Bumper Book of Government Waste, mixed up capital and revenue and different years and wasn’t really a serious analysis of waste – at least not one that was any use to anyone.[29]

Media Coverage

Paul Lashmar, an investigative reporter and lecturer in journalism at University College Falmouth, told the Independent that there was 'a direct relation between the rise of the TPA and the pressures on news organisations'. He argued that:

'Journalists are often now so overstretched that a lot of work that used to be carried out in the newsroom is carried out by groups like the TPA. You don't see extensive research anymore whereas it used to be commonplace in Sunday papers to have exercises where, for example, you would ring around every MP for their opinions as the TPA has done numerous times'.

Lashmar went on to say that:

'What you see now is journalists who are grateful for news which is almost perfectly packaged to go into the paper with a ready top line. In that sense, journalism is becoming very passive. It is a processor of other people's information rather than being engaged in actively seeking out and determining what the truth of a situation is in an energetic and inquisitive way.'[30]

The majority of media coverage given to the alliances research is produced in the tabloid press with the Daily Express producing over 3,000 articles on the TPA since the campaign group was set up. The Independent and The Guardian have practically ignored the group and some of the TPA coverage in these papers has been critical.[31][32]


A graph showing all media coverage of the Taxpayers Alliance since its inception, up to February-2011, Source: Nexis UK
Newspaper Taxpayers Alliance Related Articles
The Express and Sunday Express 3071
Daily Mail and the Mail on Sunday 1283
The Sun 978
Daily Star 701
Daily Telegraph and Sunday Telegraph 591
The Times and Sunday Times 489
The Mirror and Sunday Mirror 463
The Guardian and The Observer 178
The People 75
The Independent 63 [33]

Current Campaigns

2020 Tax Commission

On 28 January 2011 the TPA launched an initiative entitled the 2020 Tax Commission. The commission is a collaboration between the TPA and the Institute of Directors. Commenting on the launch of the commission, TPA director Mark Sinclair argued that:

"Most people want the Government’s decisions about tax and spending to be fair, but we can’t decide policy on the basis of an overly simplistic understanding of what that means. Even the most progressive taxes can have perverse results, hitting some families much harder than others for no good reason. And there is nothing fair or progressive about trapping people in dependency on benefits and subsidies. It is vital that we start thinking about how to produce a tax system that is genuinely fairer for families and encourages a strong and dynamic economy."[34]

The first research paper released by the Taxpayers Alliance for the 2020 Tax Commission project highlighted unfair tax scenarios by using 'celebrities and familiar characters from soaps like Eastenders and The Archers to draw hypothetical examples based on characters fictional tax circumstances'.[35]

The Great EU Debate

'The Great EU Debate' is a Taxpayers' Alliance campaign which involves campaigning against the UK's current relationship with the European Union. The campaign has a website featuring videos including interviews with conservative MP Daniel Hannan arguing about the importance of Britain's independence.[36] A book entitled 'Ten Years on: Britain without the EU', written by Lee Rotherham is also available to order free on the 'Great EU Debate' website'. The book 'imagines a future where Britain is free to control its own affairs, to strike its own deals and to decide its own fate'.[37] Video Contributions to the site are made by Open Europe and European Movement.[38]

The Debt Clock

The Taxpayers’ Alliance ‘debt clock’ is a truck driven around the country with a large red digital clock displaying the UK national debt on its side, in some campaigns TPA activists have worn George Osborne and Danny Alexander masks.[39] The truck is owned and sponsored by Chris Kelly a multi-millionaire businessman who is part of the Midlands Industrial Council, a group set up to donate money to the Conservative Party.[40][41]

Hate Education

According to the Guardian it was Matthew Elliott's 'pro-Israel stance' and 'the perception that British taxpayers' money was being misused to subsidise the publication of incendiary schoolbooks' in the Middle East that led to the Taxpayers' Alliance's campaign against hate education. It argued that the campaign 'stemmed from Elliott's personal concern about incitement of hatred towards Jewish people in the Middle East' but diluted 'the idea that this is an alliance of ordinary taxpayers'.[42]

Other Campaigns

Welfare Reform

Attacking The Spirit Level

Richard Wilkinson and Kate Pickett's book The Spirit Level: Why More Equal Societies Almost Always Do Better was criticised in a series of reports by the Taxpayers' Alliance, the Democracy Institute and the Policy Exchange. The criticisms from the Policy Exchange and the Taxpayers' Alliance were published just 24 hours apart.[43][44]

Political Connections and Network

On 12th May 2010 the Taxpayers' Alliance held a roundtable meeting to discuss 'the election and its aftermath'.[45] The meeting was attended by representatives from a range of right wing think tanks including the International Policy Network, Nothing British, Young Britons' Foundation, Adam Smith Institute, Progressive Vision, Civitas, Global Warming Policy Foundation, Centre for Policy Studies, Institute of Economic Affairs, Henry Jackson Society, Social Affairs Unit, Centre for Social Cohesion, Open Europe, Freedom Association and Institute of Directors. The meeting also had representatives from British Petroleum and London School of Economics.[46]

Publications

People

Donors

Midlands Industrial Council | Tony Gallagher | Christopher Kelly | Robert Edmiston | Anthony Bamford | Malcolm McAlpine | David Alberto | Stuart Wheeler | Rocco Forte | John Craven | Patrick Barbour

Speakers at TPA Events

Eric Pickles | Liam Fox | David Davis

Founders

Staff

Academic Advisory Council

Advisors 2005

Norman Barry, University of Buckingham | John Blundell, Institute of Economic Affairs | Keith Boyfield, Keith Boyfield Associates | Eamonn Butler, Adam Smith Institute | Tim Congdon, Lombard Street Research | Stephen Davies, Manchester Metropolitan University | Kevin Dowd, University of Nottingham | Charles Hanson, Economic Consultant | Ruth Lea, Centre for Policy Studies | Keith Marsden, Consultant, United Nations | Patrick Minford, Cardiff Business School | Kenneth Minogue, London School of Economics | Michael Mosbacher, Social Affairs Unit | Dennis O’Keeffe, University of Buckingham | Madsen Pirie, Adam Smith Institute | David B. Smith, Williams de Broë | James Sproule, Augusta Finance | Gabriel Stein, Lombard Street Research | Elaine Sternberg, University of Leeds | James Tooley, University of Newcastle | Alan Walters

Volunteers

Source[47]

Affiliations

Conservative Party | UKIP | Global Vision | Politics and Economics Research Trust | Midlands Industrial Council | Keltruck | West Midlands Taxpayers' Alliance | HS2 Cannot be Justified | Institute of Economic Affairs | Institute of Directors | Social Affairs Unit | Global Warming Policy Foundation | Bruges Group | Adam Smith Institute | Reform | Stockholm Network | Shell | British Petroleum | Open Europe | Nothing British | Young Britons' Foundation | Adam Smith Institute | Progressive Vision | Civitas | Centre for Policy Studies | Democracy Institute | Policy Exchange | Organisation for Economic Co-operation and Development | The Free Society | The Business | Organisation for Economic Co-operation and Development | Hayek Society | Heritage Foundation | Enemies of Enterprise Seek Controls on Tobacco | European Movement

External Resources

References, Resources and Contact

Contact

The TaxPayers' Alliance
55 Tufton Street
London, SW1P 3QL

Website: tpa.typepad.com

Notes

  1. Tim Montgomerie, The growth of Britain's conservative movement, ConservativeHome, 14 March 2009.
  2. Guido Fawkes, Susie Squire Slips in to Spinning at the DWP for IDS, Guido Fawkes, 27-May-2010, Accessed 25-June-2010
  3. FAME Database, Taxpayers’ Alliance & Politics and Economics Research Trust, FAME, Accessed 13-April-2011
  4. Heath, F., (2002), LETTER: GIBRALTAR'S CHOICE, The Independent, 9-November-2002
  5. Margareta Pagano, The Libyan Gold Rush and the Reasons Behind It, ocus.net, 11-September-2009, Accessed 11-April-2011
  6. Robert Booth, Who is behind the Taxpayers Alliance, The Guardian, 9-October-2009, Accessed 24-January-2011
  7. Taylor et al., Welfare reform in tough fiscal times, The Taxpayers Alliance, Accessed 25-April-2010
  8. The Taxpayers Alliance, Tax Harmonisation Versus Tax Competition: Which Promotes Prosperity?, Taxpayers Alliance, Accessed via web archive, version from 5-February-2004, Accessed 09-February-2011
  9. Chris Daniel, HR Transparency is Contagious, Taxpayers’ Alliance, 11-April-2011, Accessed 25-April-2011
  10. Emma Bennett, RE: Transparency, E-mail to Steven Harkins, 4-February-2011 10:01am
  11. Taxpayers’ Alliance, Register Your Support, Taxpayers' Alliance, Accessed 15-April-2011
  12. Robert Booth, Who is behind the Taxpayers Alliance, The Guardian, 9-October-2009, Accessed 24-January-2011
  13. BBC News, £1m public boss salaries 'crazy', BBC News, 3-November-2006, Accessed 18-April-2011
  14. Vikram Dodd, Conservatives confirm leading party donor withdrew from peerage list, the Guardian, 31-May-2010
  15. Robert Booth, Who is behind the Taxpayers Alliance, The Guardian, 9-October-2009, Accessed 24-January-2011
  16. The Other Taxpayers Alliance, Transparency: the TaxPayers’ Alliance must practise what it preaches, The Other Taxpayers Alliance, 19-May-2009, Accessed 09-February-2009
  17. The Independent, Barbour Index founder's pounds 22m, the Independent, 13-March-1999, URL: , Accessed 13-April-2011
  18. Politics and Economics Research Trust, Accounts, the Charity Commission, Accessed 17-April-2011
  19. Kaye Wiggins, Charity funded anti-tax group, Third Sector, 1-March-2011
  20. Robert Booth, Charity warned over relationship after £500,000 gift to TaxPayers' Alliance, the Guardian, 24-February-2011
  21. The Other Taxpayers Alliance, Transparency: the TaxPayers’ Alliance must practise what it preaches, The Other Taxpayers Alliance, 19-May-2009, Accessed 09-February-2009
  22. Robert Booth, Taxpayers' Alliance admits director doesn't pay British tax, The Guardian, 9-October-2009
  23. Heath, F., (2002), LETTER: GIBRALTAR'S CHOICE, The Independent, 9-November-2002
  24. Robert Booth,Who is behind the Taxpayers Alliance, The Guardian, 9-October-2009, Accessed 24-January-2011
  25. Taylor et al., Welfare reform in tough fiscal times, The Taxpayers Alliance, Accessed 25-April-2010
  26. Elliott, M., (2009), The truth about the Taxpayers' Alliance, the Guardian, 13-October-2009, Accessed 12-April-2011
  27. Newswire, Tax Payers Alliance challenged, Liberal Conspiracy, 17-December-2008, Accessed 25-June-2010
  28. Guido Fawkes, Susie Squire Slips in to Spinning at the DWP for IDS, Guido Fawkes, 27-May-2010, Accessed 25-June-2010
  29. Phil Taylor, All Those Fat Cat Teachers, Philtaylor.org.uk, 2-February-2009, Accessed 24-January-2011
  30. The Independent, How the Taxpayers' Alliance is making headlines, The Independent, 4-August-2008, Accessed 24-January-2010
  31. The Independent, How the Taxpayers' Alliance is making headlines, The Independent, 4-August-2008
  32. Robert Booth, Who is behind the Taxpayers Alliance, The Guardian, 9-October-2009
  33. Nexis UK, Search for all articles mentioning the Taxpayers Alliance carried out on 2-February-2011, Nexis UK, 02-February-2011
  34. Matthew Sinclair, Soaps, celebrities and the fair tax debate, The Taxpayers Alliance, Accessed 28-January-2011
  35. Taxpayers Alliance, New TPA Research: Soaps, celebrities and the fair tax debate, The Taxpayers Alliance, 28-January-2011, Accessed 09-February-2011
  36. Daniel Hannan, Youtube, GreatEuDebate, Accessed 15-April-2011
  37. GreatEUDebate, Order your free copy of Ten Years On today!, GreatEUDebate, Accessed 15-April-2011
  38. GreatEUDebate, Videos, GreatEUDebate, Accessed 15-April-2011
  39. Taxpayers’ Alliance, UK Debt Clock, Flikr, Accessed 14-April-2011
  40. Keltruck Ltd, Keltruck Sponsor the TPA Debt Clock, Keltruck, 20-April-2010, Accessed 14-April-2011
  41. Birmingham Post, Figureheads back group calling for lower taxes, Birmingham Post, 1-August-2007
  42. Robert Booth, Who is behind the Taxpayers Alliance, The Guardian, 9-October-2009, Accessed 24-January-2011
  43. T Adams,(2008), Have the Right taken all the best ideas, the Guardian, 31-August-2008, Accessed 29-November-2010
  44. R Booth (2010), The Spirit Level: how ‘ideas wreckers’ turned book into a political punch bag, the Guardian, 14-August-2010, Accessed 29-November-2010
  45. Taxpayers Alliance Rountable, leaked taxpayers alliance guest list is a whos who of the conservative right, Political Scrapbook, 18-May-2010, Accessed 31-March-2011
  46. Taxpayers Alliance Rountable, leaked taxpayers alliance guest list is a whos who of the conservative right, Political Scrapbook, 18-May-2010, Accessed 31-March-2011
  47. Taxpayers' Alliance Who we are, accessed 20 September 2007