Time for a change: AAT report proposes ways to save UK £27bn

The Association of Accounting Technicians (AAT) has published a detailed report that recommends various measures to raise a total of £27bn, without relying on the taxpayer.

This report has been published in response to the prime minister recently committing to raising a £20bn annual investment for the NHS, as well as other government departments. Theresa May has pledged that this will be in place by 2023.

With concerns about the UK’s ever-increasing deficit, there is the persistent worry that the money will be raised through taxes, putting more pressure on the public.

AAT’s recommendations include the simplification of inheritance tax, scrapping Christmas bonuses and changing the qualifying age for free prescriptions and eye tests from 60 to the state pension age.

The report stated: “If the benefits are properly communicated to the electorate, it is unlikely that many people would oppose changes that free up funds to invest in schools, education and defence, whilst avoiding uncomfortable tax rises or passing bigger debts on to our children and grandchildren via the excessive UK deficit.”

At the end of March 2018, the general government gross deficit was measured at £1,763.8bn – more than 85% of the UK’s GDP. The European Commission considers deficits above the 60% mark to be “excessive”.

Phil Hall, AAT head of public affairs and public policy, said: “AAT’s recommendations will not clear the deficit or enable investment to be showered across the country but they do identify over £27bn of annual savings and deserve serious consideration as a worthwhile, credible and thought-provoking contribution to the UK taxation and investment debate.

“Rather than knee-jerk responses, we need policy makers who will look at what’s effective and what isn’t, what’s fair and what’s not and where investment is really needed rather than where it’s politically expedient to spend the taxpayers money.”