There is a squirrel in my front garden this morning as I work on my computer. It is industriously dashing back & forth across my front garden, presumably burying or unearthing nuts. It is so fast I'm not sure which. It needs to work to survive. It buries food to be able to survive the winter when there isn't much around. The squirrel plans for the future & works hard to survive. It has no support mechanism other than itself, no family, friends or community to provide for it. It has to be self reliant.
I think there is a lesson there.
We have just had a budget. Personally I cannot imagine the complexites of being chancellor of the exchequer or a member of the treasury team. Simply managing my own life is sometimes a challenge. I cannot rationalise "quantitative easing" or running a country on massive borrowing & debt. None of it makes sense to me. I don't think I have ever been in debt apart from a mortgage. I certainly don't keep a running total of debt on my credit cards. If I can't afford something I don't buy it.
I believe in fair wealth distribution. I believe that the wealthy & the poor should be taxed in a way that means a similar proportion of their wealth should be taxed. That is not the case in the UK today. I think the most the very wealthy pay is 35% some pay 30% & some as little as 10% while the poorest pay 48%.
It's relatively simple. Our adult population needs to work in order to live. Adults need to pay taxes in order to fund all of the infrastructure of life in a society. The work individuals are capable of doing varies hugely according to age, skills, experience & capacity. Some people are not able to work because of ill health or disability. Unless we all do contribute to that equation, society as we know it cannot survive.
We are now in complete imbalance & our system is failing. Demographically we have an increasing retired population & a decreasing birthrate. We also have an increasing population on benefits - The number of working-age adults (16-64) claiming disability or incapacity benefits in England and Wales grew from 2.8 million in 2019 to 4 million by March 2025. This represents a rise of over 1 million people, or about a 38% increase. That is not sustainable.
In simple terms we need more young people to be workers to generate taxable income to support all of the infrastructure & pensions for the old that we all take for granted. We cannot go on borrowing money to get us out of trouble. The interest on the debt is crippling & our productivity is lower than France, Germany & the USA. Our growth is half of the Eurozone.
Unfortunately I don't have the solutions to this. Fortunately I am not the Chancellor of the Exchequer. I do think that our tax system is ridiculously complicated & needs complete reform. No one, even HMRC, really understands it. I do think that if we reformed it, so that at the very least the rich & the poor were treated equally & fairly it would be a start.
Politically that is a nettle no government has been prepared to grasp, fearing it would make them unpopular & unelectable. But there are countries in Europe that have far simpler & better tax systems than we do. The Netherlands, Austria, and Sweden are often cited for providing a good balance of extensive welfare states, solid infrastructure, and reasonable tax rates. The simplest and most competitive tax systems are Estonia, Latvia & Lithuania. Surely we can learn from them all.


