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The Guardian - UK
The Guardian - UK
Politics

Wasted public money and Rachel Reeves’s income tax hokey cokey

Keir Starmer and Rachel Reeves
‘It’s the lack of a positive vision that lets this government down.’ Photograph: Reuters

In discussion of the chancellor’s need to raise taxes and cut spending, there has been too little focus on making better use of current resources. Every day, money is wasted because fragmented public services continue to work in silos and are not organised around the needs of individuals, families and communities. Too little is spent on preventing problems and too much on responding to them.

As ministers and officials, we promoted Total Place pilots in 2009-10. They showed that far better outcomes could be achieved for the same money when Whitehall allowed local service leaders to work with local communities across service and budget boundaries. Place-based budgets should once again be put at the centre of public service reform.
Michael Bichard Former permanent secretary, Department for Education
John Denham Secretary of state for communities and local government 2009-10
Liam Byrne MP Chief secretary to the Treasury 2009-10
Helen Bailey Director of public service, HM Treasury 2008-11

• Demos research shows that an increase in income tax is not only necessary to get the public finances out of the mess, but could avoid broad public opposition if delivered alongside pragmatic taxes on wealth. And reforms to level the playing field like the partnership tax announced this month enjoy voter support from across the political spectrum.

It’s the lack of a positive vision that lets this government down. The public won’t get behind tax rises if the government is hesitant to make the case for them. Your editorial (11 November) rightly urged the chancellor to stop digging holes and lay the foundation for a different politics. This budget offers an opportunity to change the narrative in Britain. Offer the public a new deal between citizen and state, founded on fairness, mutual contribution and a concrete promise on delivery.
Dan Goss
Researcher in economic policy, Demos

• You report (14 November) that Rachel Reeves is no longer going to raise income tax rates. She should go on Strictly Come Dancing, as she’d do a mean hokey cokey!
Jol Miskin
Sheffield

• Have an opinion on anything you’ve read in the Guardian today? Please email us your letter and it will be considered for publication in our letters section.

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