Reform Report Argues 'iPod Generation' Highly Taxed

by Jason Gorringe, Tax-News.com, London

31 October 2007

A new report published by the centre-right think tank, Reform has accused the UK government of treating young people in the UK with 'indifference', throughout 2007.

The report alleged that the government’s fiscal policies are "mortgaging the future of a generation."

This particular report is the third of the think tank’s annual examinations of what it has termed the 'IPOD generation': 18-34 year-olds who are Insecure, Pressurised, Over-taxed and Debt-ridden.

The report argued that:

"Instead of setting a new path of fiscal responsibility, it increased spending on healthcare and pensions and raised levels of borrowing. The Government has lost control of borrowing in recent years. For the five financial years from 2002-03 to 2006-07, its initial forecasts underestimated the true level of borrowing by a total of GBP121 billion. "

Reform further suggested that higher spending and borrowing will impose upwards pressure on taxation.

The report proposed a new approach, based on public spending control, targeted tax reductions and improved education.

Andrew Haldenby, Director of Reform, concluded by arguing that:

“The Government fails to face the facts: high taxation and high public spending impose massive burdens upon both young people and the economy. The rest of the world has outlined a better approach; an approach which will finally liberate the IPOD generation.”

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