Has the public sector grown out of control?
With news that the Labour government has, over the last 10 years, created over 500,000 public sector employment positions there are serious concerns for private pensions and non-public sector workers in the UK. When you take into account MPs, civil servants and the vast array of local authorities across the UK it appears that the public sector is the place to be with job security and pension arrangements better than any other sector in the UK.
There is no doubt we have seen the creation of a "pension time bomb" in the UK which has begun ticking with potentially billions upon billions of pounds at risk. Stealth taxes, income taxes and an array of green taxes have been introduced over the last few years resulting in top taxpayers in the UK losing 61.5 pence from every one pound earned to the Treasury. While UK taxes are not the highest in the world they are certainly in the top league with significant concerns we could see further upward movement in the short to medium term.
However, the short-term tax smash and grab which we have mentioned on the site a number of times could see a significant outflow of funds and entrepreneurs overseas to avoid the ever-growing tax burden of the UK.
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