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Analysis

They're Coming for Your Money

Analysis

BBC

News, Politics

4.61K Ratings

🗓️ 8 July 2013

⏱️ 29 minutes

🧾️ Download transcript

Summary

Paul Johnson, the director of the widely-respected independent Institute for Fiscal Studies, has been looking at the latest projections for how much the government will spend in the next five years and how much revenue it will receive. Despite the recent announcement of further cuts in spending, tax rises look difficult to avoid.

Paul explores the reasons for this gap in the budget and asks what taxes could help to fill it. With tax avoidance and evasion now at the top of world leaders' agendas, he asks if the increasingly tax-averse companies sector can be made to pay more and how much the rich and wealthy could contribute. He also considers the taxation of our houses and pensions and whether more will be taken from them.

Then he focuses on the three levies which contribute the lion's share of government revenue - income tax, national insurance and VAT - and, with politicians, economists and tax experts, finds out how much we are all - young and old, better and worse off - likely to pay. He also drops in on a young family in Norfolk to discover what taxpaying voters think of the choices and what they will be expected to pay.

Among those taking part: Nigel Lawson (former Conservative Chancellor of the Exchequer); Kitty Ussher (former Labour Treasury minister); Bill Dodwell (head of tax policy at Deloitte); Julian McCrae (former top Treasury official now at the Institute for Government); Gavin Kelly (chief executive of the Resolution Foundation who worked during the Blair/Brown years in Downing Street and the Treasury); and Malcolm Gammie QC (a leading tax lawyer).

Producer Simon Coates.

Transcript

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0:35.4

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0:36.4

Thank you for downloading this edition of Analysis from the BBC.

0:41.6

In this programme Paul Johnson asks whether taxes are set to rise and if so which ones are

0:48.0

likeliest to go up and who will pay them.

0:51.0

I have parents that live in Cromer an hour away and it is certainly

0:57.1

noticeable that we don't make the effort to go and see them as much as we used to

1:00.4

simply because we'd have to put an extra 15, 20 pounds in the tank.

1:05.4

At the end of the month, perhaps we'd rather not spend on that.

1:08.0

Like the rest of us, Chris in West Norfolk is feeling the pinch.

1:13.0

The pleasant routines of family life have had to be sacrificed to the realities of austerity.

1:19.8

But the pressures on Chris's household finances looked likely to tighten further in the years ahead.

1:25.4

Why? Because, get ready for the bad news, taxes look set to rise.

1:32.4

That's a conclusion my work as the Director of the Institute for

1:35.7

Fiscal Studies has led me inexorably towards. At the IFS a wholly

1:41.1

independent research organization we look at the public finances, at budgets, and

1:46.4

at tax policy.

...

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