| Topic: | Re:Re:Labour's Next Tax Rises - Capital Gains Tax on Sale of Houses ? | |
| Posted by: | David Giles | |
| Date/Time: | 19/01/05 23:28:00 |
| Toby I am glad you agree with my sentiments. I think we are in for a very rude shock if Labour wins the next Election. Capital, people and investment are already fleeing and avoiding this country in anticipation of Gordon Brown's next tranche of tax increases.Mnay people have already left because of existing taxes like inheritance tax and IR35. I agree with you 100% that the private sector has a much better record than the public sector in bringing in major projects on time, to specification and under budget.I have worked on both and the difference is like night and day. Compare the Dome or the Scottish Parliament fiascos with almost any major private sector project. However my reference was to the fact that PFI Projects do not appear on the Governments' balance sheet as Government public sector capital expenditures. This creates an illusion that the Government is not spending money. The Government may not be spending the money out of its capital account but the PFI projects will have to be paid for in future years out of increased Government current expenditures which will have to be funded by taxpayers in the future rather than at present. PFI is a fancy form of funding government capital projects off the gopvernments' balance sheet by something similar to leasing or hire purchase. The new West Middlesex Hospital built by Bouygues, the major French construction company, is an example of a hospital built now by the private sector whose capital cost will have to be paid for by the public over many years. Prior to the Labour election victory in 1997, the new West Middlesex Hospital was going to be built by Taylor woodrow a V Britiush form under a scheme know as Public Private Partnership (PPP). Although Labour had been opposed to PPP, when Labour was elected Labour replaced PPP by something very similar called PFI. More significantly, with regard to the West Middlesex, they replaced Taylor Woodrow, a British company, by Bouygues, a French company. I wonder would the French Government ever award a contract previously intended for Bouygues to Taylor Woodrow ? There is no such thing as a free lunch or a free PFI. What goes up, must be paid for, sooner or later. |