For decades, workers across England have paid into a system where most UK tax revenue is raised in England, collected centrally by the British government and then redistributed across the United Kingdom. The uncomfortable question now being asked in towns, cities and workplaces across England is simple:
What would happen if far more of the taxes raised in England were actually spent on England itself?
The numbers are difficult to ignore and just to recap,
England raises approximately £930 billion in annual tax revenue, yet identifiable public spending in England sits closer to £750 billion. That leaves a gap of roughly £180 billion flowing into wider UK redistribution, debt servicing and central state expenditure.
At the same time, workers across England are repeatedly told there is “no money” for roads, hospitals, GP services, schools or funding of council projects.
Yet England remains one of the richest economies in the world.
The issue is not whether wealth exists. The issue is where it goes and what would it mean if England kept its taxes?
England Raises the Most, Receives the Least
| Nation | Public Spending Per Person |
|---|---|
| England | Around £13,100 |
| Scotland | Around £15,500 |
| Wales | Around £15,100 |
| Northern Ireland | Around £16,100 |
That imbalance affects everyday life and this is seen as workers in England often pay charges that many people elsewhere in the UK simply do not face. To mention just a few.
What Workers in England Often Pay
| Service or Charge | England | Scotland | Wales |
|---|---|---|---|
| NHS Prescription Charges | £9.90 per item | Free | Free |
| University Tuition Fees | Up to £9,535 per year | Free for Scottish students in Scotland | Reduced support system |
| Hospital Parking Charges | Common in many NHS trusts | Mostly abolished | Free in most areas |
| Personal Social Care | Means tested | Free personal care available | More generous support |
| Water Charges | Privatised system | Public system | Public system |
A worker in England can therefore face prescription bills, rising council tax, student debt, private water charges and reduced local services while taxpayers elsewhere in the devolved countries of the UK often receive both higher public spending and additional devolved benefits.
That is why the debate is becoming increasingly difficult to ignore. Now just look at what could be funded if the taxes raised in England were used in England!!
What England Could Potentially Fund by using Taxes Raised from Workers across England in England
If even part of the tax gap remained in England, the scale of possible investment would be enormous.
| Potential England Investment | Estimated Annual Cost |
|---|---|
| Eliminate NHS maintenance backlog | £13 billion |
| Major pothole repair programme | £16 billion |
| Build 150,000 homes annually | £25 billion |
| Fully modernise schools and colleges | £12 billion |
| Recruit 100,000 additional NHS staff | £7 billion |
| Restore local council funding cuts | £10 billion |
| Upgrade rail and transport networks | £20 billion |
| Expand police and community services | £5 billion |
| Abolish NHS prescription charges | £700 million |
The cost of ending just NHS prescription charges in England alone would represent less than 1% of the estimated annual difference between tax revenue raised in England and spending returned.
This is why many workers across England increasingly feel the system is no longer fair. The Workers of Union has highlighted this for many years and will continue to go so. For the Workers of England Union, it is a question of fairness, priorities and ensuring England itself should benefit more directly from the wealth it creates.
Stephen Morris
General Secretary
Workers of England Union.
This Article is Tagged under:
Investment, UK Government, Workers of England, UK Tax
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