Balancing The Books Deep Dive

Our national debt is not just a number on a spreadsheet; it's a burden on our future. It's the school not built, the hospital wing not funded, and the opportunity our children won't have. But this is a challenge we can, and will, overcome together.

This isn't about left versus right, or business versus worker. This is about partnership. It's about a new deal for Britain, founded on fairness, common sense, and the simple principle that everyone should contribute their fair share.

We propose a plan to fix our finances, reward hard work, and build a stronger, more prosperous United Kingdom for generations to come.

One Nation, One Tax System: Rewarding Work, Not Just Profit

For too long, our tax system has been a complex web that penalises job creation. We propose a change. Currently, the UK has a two-tier Corporation Tax system where companies with profits under £50,000 pay 19%, while those earning over £250,000 pay 25%. For businesses in between, a complex "marginal relief" creates a cliff-edge that can punish growth. This system is confusing and can actively discourage a small business from expanding.

We propose scrapping this complicated two-tier system and creating a single, simple framework that works for everyone. We propose that the most profitable corporations contribute more to our national recovery .

This is a partnership. In return for a proposed single Corporation Tax rate of 35%, we believe there should be a major cut to the tax on jobs through a substantial reduction in Employers' National Insurance.

The Financial Impact: This is a major reform with a major impact. Based on recent tax receipts, increasing the main rate from 25% to 35% could raise a gross figure of over £30 Billion in extra revenue each year. While some of this would fund the vital cut in jobs tax, the net gain would directly reduce the amount we have to borrow annually, meaning we add tens of Billions less to the national debt pile.

No More Free Rides: If You Earn in the UK, You Pay in the UK

It is a basic issue of fairness. Domestic businesses pay their taxes, and so should giant multinational corporations. The days of global giants generating huge sales in Britain and then funnelling their profits to offshore tax havens should be over. Currently, complex rules can be exploited. Our plan proposes to stop the use of artificial "brand fees" and "management charges" that do nothing but suck taxable profit out of our country.

The Financial Impact: While the exact figure is hidden by corporate secrecy, the tax lost to these schemes is estimated to be in the many Billions. Every £1 Billion of profit that is successfully kept and taxed in the UK under our proposed 35% rate would generate an extra £350 million for the Exchequer to pay down debt.

Smart Government, Smart Investment: Getting Our Money's Worth

Fixing our finances isn't just about collecting tax; it's about being smart with our money and investing in our future.

First, we propose improving the nation's cash flow by reforming when tax is paid. We propose that the standard deadline for paying Corporation Tax is brought forward to 6 months after a company's year-end. For larger companies (those with an expected tax bill over £500,000), we propose replacing the complex quarterly payment system with a simple Payment on Account. This would mean they pay 30% of their estimated tax bill 9 months into their trading year.

The Financial Impact: This isn't about raising more tax, but about collecting it sooner. By receiving tens of Billions of pounds months earlier, the government can drastically reduce its need for expensive short-term borrowing. With the UK's debt interest bill recently exceeding £100 Billion a year, this cash flow reform could save hundreds of millions, or even Billions, of pounds annually that would otherwise be added to the debt.

Second, we propose transforming how we support innovation. Instead of handing out Billions in "super-deduction" tax breaks that often reward activity that would have happened anyway, we believe the UK should become a direct partner in Britain's future. We propose to:

• Replace wasteful "super-deductions" with a simple 100% tax write-off for R&D work done here in the UK.
• Use the savings to create a national investment fund to provide grants and loans directly to our most exciting tech start-ups.
• Take a stake in their success. When these government-backed companies succeed, the taxpayer gets a share of the profits—a new revenue stream to reinvest in Britain.

A Common-Sense Clear-Out: Saving Billions by Scrapping What Doesn't Work

Just like any household, the government needs to stop spending money on things that don't provide value. Official analysis has shown that the UK is spending £5.4 Billion every single year on a handful of complex tax reliefs that have little to no positive impact on our economy. They are a costly waste of taxpayer money. Our plan is simple: we propose scrapping them.

The Financial Impact: This is the most direct and certain saving in our plan. It would reduce government borrowing by £5.4 Billion every single year. Over a decade, this single measure would prevent £54 Billion (plus interest) from being added to our national debt.

Our Shared Future

This plan is ambitious, but it is also fair and achievable. It is a plan that asks the most from those who have the most to give. It rewards work and encourages investment in Britain. It stops those who avoid their responsibilities and ensures that the taxpayer gets value for every single pound.

This isn't about punishing success; it's about building a system where we all contribute to a shared goal. A system that works for everyone.

Together, we can fix our finances, clear our debt, and build a stronger, more prosperous United Kingdom.