Brexit Britain’s bloated public sector breaks records, as pensioners poised to suffer Labour’s cuts

Oh what a tangled web we weave/When first we practice to deceive

‘Oh, what a tangled web we weave/When first we practice to deceive’ means that when you lie or act dishonestly you are initiating problems and a domino structure of complications which eventually run out of control.

That is what is happening right now as Labour uses the non-existent 22 billion blockholes to cripple the elderly by taking away their Winter allowance

Would you like to see why Labour are doing it?

The public sector headcount has increased by half a million in the past six years. However, the question remains where is the corresponding improvement in public services? Plus where is the money to pay them?

The significant rise in the number of employees in the State is evident in the central government, the NHS, and the Civil Service. The public sector headcount has increased by 545,000 in the 6 years leading up to the COVID crisis, bringing the total number of public sector employees to almost six million (5,940,000). This number continues to grow by over 100,000 each year. Additionally, there is concern about the 10 million pensioners who are at risk of losing their winter fuel allowance due to cuts proposed by Starmer. These developments raise important questions on behalf of the British public.

The Public Sector 2019–2024

Increase in net headcount

June 2019 5,395,000 June 2024 5,940,000 an increase of 545,000 (+10.1%)

[Source Office for National Statistics, 10 Sept 2024.]

Unfortunate timing for Sir Keir Starmer

On the same day (mostly Labour) MPs voted to cut winter fuel payments from around 10 million pensioners, the Office for National Statistics released its latest data for the size of the public sector. This shows that the headcount for those paid out of the public purse rose yet again in the last 12 months by 116,000.

This brings the total increase over the past five years to 545,000 extra people (+10.1%) being employed in the public sector. The overall headcount is now just shy of six million.

Sectors with the highest percentage change in headcount

1. NHS 19.6%

2. Public Information 15.4%

3. Police 13.3%

4. Other Public Service 5%

5. Education 0.5%

Then we have

1. Construction down -2.8%

2. HM Forces down -3.3%

3. Other health and social work down -4.7

The NHS, which is the largest employer in Western Europe, continues to grow even bigger.

The NHS has been the largest employer in Western Europe for years. The latest data indicates that this dominance is expected to continue, with an additional 1/3 million staff added to the NHS headcount over the last six years. The NHS has seen the largest percentage increase in headcount (19.6%) among all public sector employees, second only to the Civil Service, which will be detailed in a separate report.

Now here is a question you might like to ask your Labour MP

Why are an increasing number of individuals being hired in the public sector despite the need to make difficult decisions in challenging economic conditions? For example, statistics show that public sector employment has risen by 10% in the past year, raising concerns about the impact of budgetary constraints.

Sir Keir Starmer discusses the economic situation inherited by his government, while his Chancellor mentions a "£22bn black hole" in the national accounts, despite having received HM Treasury's figures for years. The reduction in winter fuel allowances for millions of elderly people came as an unexpected development for these pensioners.

Pensioners often do something that many younger people neglect — they maintain a household budget. The reason is straightforward, they understand that their income is unlikely to see significant increases. Without the possibility of promotions or higher salaries, they must live within their means. As a result, any unexpected reduction in income becomes a serious concern.

During Margaret Thatcher’s third term of office in 1989, she introduced the Community Charge, which quickly gained the infamous nickname “the Poll Tax.” This decision significantly contributed to her loss of popularity and played a part in her fall from power in 1990.

Is Sir Keir Starmer encountering a “Poll Tax moment” early in his time at №10 Downing Street, from which he might not fully bounce back?

Surprisingly, the new Labour Prime Minister would choose to appear to attack the elderly over a matter which represents only a small fraction of the Government’s total annual expenditure.

Or is it a surprise?

Labour’s secret army urging Starmer to wage total tax warfare on pensioners

PM Keir Starmer and Chancellor Rachel Reeves are increasing their efforts to implement tax reforms targeting pensioners, with support from an undisclosed group aiming to increase the financial burden on the elderly

A secret army of left-wing think tanks are urging Labour to take ever more extreme tax measures. They’re advocating intergenerational warfare by targeting older people with a bit of wealth to their name.

One of them is The Fabian Society, the oldest UK tank founded in 1884, whose long-term goal is to establish a democratic socialist state in Great Britain.

Last month, it called for Reeves to hike three taxes in her autumn Budget on October 30, including a £10billion tax raid on our pensions.

Millions of individuals rely on tax-free cash as a key component of their retirement plans. The proposed change to establish a £100,000 limit on this tax-free cash would significantly disrupt these plans. Over time, the fixed limit would result in an increasing number of middle-income pensioners being affected. It’s important to note that high-value public sector pensions would not be impacted by this change, as is the case with other tax measures proposed by Labour.

The Fabian Society is also calling for Reeves to eliminate higher rate tax relief on pension contributions and to impose inheritance tax on unused pensions. The Fabians are not the only ones taking action. The Resolution Foundation has similar goals and in June, it suggested capping the maximum amount people can hold in tax-free Isas at £100,000, which would also affect older savers.

The state pension triple lock has also been criticized for favouring the older generation over the young. Additionally, questions have been raised about why pensioners are exempt from paying national insurance on their earnings.

In a tweet on Wednesday, it called for an increase in the capital gains tax, stating that it is “unjustifiably low.” Additionally, it expressed a desire to raise the inheritance tax as well.

Resolution Foundation’s director, Torsten Bell, has previously advised former Labour leader Ed Miliband and was appointed to represent a safe Labour seat during the election. This highlights the significant influence of the think tank.

There are plenty more. Richard Murphy at Funding the Future has lots of thoughts. Tax Justice is also on the march, “fighting for fairer taxes that take more from the very rich”.

The Institute for Public Policy Research sounds authoritative but it’s just another social warrior fighting the war on wealth

None of these think tanks have put forward sensible suggestions for growing the UK economy. Instead, they seem to only advocate for increased taxation, which may not necessarily be the solution. Additionally, the Labour Party is receiving support from the unions, who are pushing for the implementation of a wealth tax.

Former HMRC boss Sir Edward Troup has been appointed as a tax advisor by Reeves. He expressed enthusiasm when she terminated the WFP.

The issue with private armies is their uncontrollability, as Starmer and Reeves are likely to realize at their own expense. The WFP debacle illustrates the consequences of Labour giving in to these tax warmongers.

The think tanks are providing their input. Pensioners should be cautious, and Starmer and Reeves need to tread carefully as well. This is a political minefield for them.

If people think that Labour and Starmer are acting alone they are sadly mistaken. Think Tanks like The Fabian Society are pulling their strings. The Fabian Society is historically related to some of the furthest-left wing factions of Radicalism that you will ever find.

An explanatory note appearing on the title page of the group’s first pamphlet declared:

For the right moment, you must wait, as Fabius did most patiently when warring against Hannibal, though many censured his delays; but when the time comes you must strike hard, as Fabius did, or your waiting will be in vain, and fruitless

That has never gone away. The Fabian Society has been waiting in the background very patiently for 14 years, quietly seething in the background. Now they are striking and the target is the elderly.

The Fabians are proposing a reduction in the maximum tax-free cash lump sum from £268,275 to £100,000, which is the most popular pension benefit. They are urging Reeves to support this change.

Millions build their retirement plans around tax-free cash and this would throw them into disarray. While £100,000 seems a lot, once that cap is set it will never increase, dragging more middle-income pensioners into the net every year. And of course, it won’t affect gold-plated public sector pensions. But then, none of Labour’s tax raids will.