Diary of a (Maybe) Retired Pastor

I Don’t Do Gift Aid Anymore

 This is also why you pay taxes, for the authorities are God’s servants, who give their full time to governing. ⁷ Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honour, then honour.

Romans 13:6-7

We are in the fortunate position of being able to make donations to various charities. Of course, we give to our church and have always Gift Aided it, but we also try to support other causes. Lately, I have ceased ticking the Gift Aid box on the donation forms. Gift Aid is an option to include the tax that you would have paid on the donation so that instead of going to the government it goes to the charity. It occurred to me that the more we Gift Aided, the less of our taxes would be retained by the government and, hence, less would be available to fund public services. At a time when all our public services are financially compromised the government needs all the taxes it can get to keep them going! So, I have stopped adding Gift Aid to our donations.

We need a different national conversation around tax. Our major political parties are locked into a “reduce taxes at all costs” paradigm. As a result, we see our public services crumbling and the government constantly finding new ways to increase tax revenue without appearing to do so. Consequently, our tax system is unfair, unbalanced, and inadequate. And it is opaque in the extreme! Certain sections of the media will stridently trumpet the historically high rates of taxation we are experiencing but (with the exception of one or two bodies) fail to point out that our taxation is no heavier than the average of similar European countries even at these historically high rates. The only winners of our tax system are the extremely wealthy.

Our politicians treat us as children believing that we cannot hold an intelligent and mature conversation about the cost of public services and the amount of tax that needs to be raised in order to have good public services. They believe that we can be fobbed-off with constant reductions in general taxation and not make the connection with failing public services. Taxes have to rise and the extremely wealthy have to pay more in taxes.  This has to be done openly and transparently (i.e. income tax) and not through Faustian mechanisms designed to obfuscate and deceive. Of course, restoring public services and improving public services after years of deliberate financial starvation in order to fund tax-cuts cannot be done overnight. The Junior Doctors’ dispute is testament to that – restoring a 35% cumulative loss in pay is not feasible overnight but the present government, dogmatically wedded to reducing taxes, cannot provide a long term path to restoration that  might resolve the dispute.  But will the Labour Party, Keir Starmer and Rachel Reeves in particular, be bold enough to grasp the nettle and start to talk honestly about taxation and the cost of restoring public services? So far, the signs are not encouraging.