I got on the 9.43 to Liverpool which ran as a train should run, straight and on time. My compartment seemed to be primarily pension people, I sat opposite the CEO of the COE (Church of England) John Ball. Beside me noted lawyer Robin Ellison.
We arrived at Lime Street. As second class was at the front of the train we delighted in seeing the VIPS joining the taxi queue at its fullest (“the first shall be last” – I quipped)
John Ball decided we would walk to the Conference which turned out to be very productive as we had a chance to talk CDC, something that Robin and I have been keen on for a while and John very keen on now.
The multi-employer CDC scheme took a step closer to reality last week with a Government consultation which I was rather pleased I’d read. It did not appear to have overly pleased the Church of England that has around 700 employers in its scheme and is keen to move to CDC asap (18 months being the target).
As prospective “Proprietor” of the arrangement, John was sounding a little underwhelmed by what he described as a sellotaping of a new set of rules to old, without the kind of thought that he’d clearly put in to getting this done.
I very much hope that clerical employers and employees will find the journey to CDC as easy as we found our trundle down the hill. In all too short a time we’d reached our destination. Those on the back of the train were still drifting to the Conference 45 minutes later.
It is not the amount you pay to travel that makes for a great journey, but who you travel with! As with so much of these conferences, the trick is getting out and about, something I should remind the majority of journalists in the press room who think the point of travelling 450 miles from London is to sit at a laptop all day, filing stories and following events on a big screen that might as well have been watched on their phones at home.
I am looking forward to more walking and talking (as Damian would have it) because the best moments of this conference have been when I’ve been on my feet.
This included dancing to a Beatles cover band in a mocked-up Cavern somewhere in Albert Dock. Thanks to Mercer and especially to Tracie Denson – who got me a beer and a seat. Thanks to all the Mercer staff who looked after us and gave us a great evening.
Apologies to Terry Pullinger and all at the Pension PlayPen yesterday, it would seen that mobile wi-fi is not yet up to Teams streaming – at least if you’re on the train.
Ironically , what I missed about Royal Mail , I gained from the Church of England. CDC you later delegates, I’m onto my first call of the day and I’ll be making it on the hoof from the glorious IBIS Hotel!
What have you observed as the contribution to the changes to the tax system discussed at the conference?
Here is a summary of the main ideas circulating with aproximations of tax raised:
1. Pensions tax relief – £3-15bn ( 30or m20% releif on contributions.
2. End AIM IHT relief – £100m
3. Limit business and agricultural property relief – £1-2bn
4. Tax large gifts – £ unknown
5. Pensions inheritance tax reform – £100m to £2bn
6. Increase capital gains tax – £1bn+
7. Eliminate the stamp duty “loophole” for enveloped commercial property – £1bn+
8. Increase ATED – £200m+
9. Increase inheritance tax on trusts – £500m
10. Reform R&D tax relief – £3bn
11. Push the Bank of England to stop paying interest on some of the QE bonds it holds – c£5bn
12. Council tax increases for valuable property – £1-5bn
13. Introduce an exit tax – £ unknown
14. Abolish business asset disposal relief – £1.5bn
15. Increase vehicle excise duty – £200m+
16. Reverse the Tories’ cancellation of the fuel duty rise – £3bn
17. Review VAT exemptions – £1bn+
18. Increase the digital services tax – £400m
19. Cap tax relief on ISAs – up to £5bn
20. Reduce the VAT registration threshold – £3bn
21. Raise the top rate of income tax – <£1bn
22. Raise the rate of income tax on dividend and/or interest income – £ unknown
23. CGT on death – £ unknown
24. Wealth tax – £1bn to £26bn
25. CGT on unrealised gains – £ unknown
26. Financial transaction tax – £7bn+
27. CGT on people's homes – £31bn
28. Means test the State pension – £1bn+
29. Increase the rate of VAT – £8bn+
30. Ones that personally effect me significantly not disclosed £XM
The total estimated yield of these suggestions is between £21bn and £41bn, with some estimates being higher or lower depending on the specific implementation.
The conclusion is that while there are many potential sources of tax revenue, some are more likely to be implemented than others. The Chancellor's options are limited by the need to balance the budget and avoid unpopular tax increases, and some suggestions may be more effective at raising revenue than others.