Today there is a genuine concern that our benefits claimant’s volume is increasing considerably, and we believe that there is a range of reasons why this situation exists.

There is always a need for taxation to deliver a range of public services and today there are many services delivered by government. The population that works pays taxes to cover the cost of the services delivered.

With over 9 million people now claiming benefits this leaves a smaller population earning and paying taxes and this against a declining population due to falling birth rates and higher levels of immigration
numbers the overall population continues to rise.

Therefore, those that are working and paying personal taxes are taking
responsibility for the social value they create. Sadly, however there is today a greater demand for tax income by government to support society and the graph above demonstrates this,

• The relevant government political party applying the rate of taxable income is shown
• The continued rise in population
• The level of inflation
• The growth in taxation because of the tax-free levels not following average wage levels.

The second graph details the same period of time as the first with further details related to specific events, the height of employment back in the 1970’s at around the time that the taxation gap widens.

This is yet a further example of the lack of inspiration preventing aspiration.

If the government increases the tax-free limit more in keeping with reality, then there would be a much greater level of encouragement for people to work and a vast reduction in benefit payment issues.

I remember interviewing people recommended by DWP for a particular role and they would often say that they wanted a job to avoid queuing at the Benefits office every Thursday which they do not do today.

By creating an environment with a more realisable return on the effort invested, there would likely be an increased tax income and reduction in benefit claimants, and we will inspire to aspire.

ADRIAN HAWKINS OBE
Chairman – biz4Biz
Chairman – Hertfordshire Futures Board
Chairman – Stevenage Development Board
Chairman – Hertfordshire Skills & Employment Board