In the run-up to the election, it is to be expected that the budget promises us good things – after the election, we have more austerity to look forward to.
To give the government credit, they have never denied this. However, what many do not realise is that austerity would not even be required if the tax system worked the way it should.
The nation loses far too much revenue through the exploitation of tax loopholes. Less national revenue means less national spending – fewer teachers, police, firefighters, social workers and so on.
The proposed Diverted Profits Tax (sometimes called the Google tax) goes some little way towards addressing the shortfall in our national budget.
However, there remain other issues; for example the Mayfair tax loophole, which costs the country £700 million each year, according to some estimates. That lost money represents public services we will have to do without until the loophole is closed.
Whoever wins the next election, making the tax system work the way it should, so that those who benefit the most from our nation pay their fair share, rather than off-loading the costs onto the rest of us, must be a priority.