{"id":4517,"date":"2024-04-17T12:32:40","date_gmt":"2024-04-17T11:32:40","guid":{"rendered":"https:\/\/hosting2.northumbria.ac.uk\/commonsensepolicygroup\/?page_id=4517"},"modified":"2024-05-31T14:59:47","modified_gmt":"2024-05-31T13:59:47","slug":"costs-benefits-and-funding","status":"publish","type":"page","link":"https:\/\/hosting2.northumbria.ac.uk\/commonsensepolicygroup\/act-now\/costs-benefits-and-funding\/","title":{"rendered":"Costs, Benefits and Funding"},"content":{"rendered":"\t\t
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Act Now: Costs, benefits and funding<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\"Act Now: Costs, Benefits and Funding\" by the Common Sense Policy Group is licensed under CC BY-NC-ND 4.0 (https:\/\/creativecommons.org\/licenses\/by-nc-nd\/4.0\/)<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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We analysed the policy reforms outlined in the report using a model of the relationship between Gross Value Added (a measure of economic output) and public and private spending on services and investment at the regional and local level in the UK and constituent countries.\u00a0We assume that the capital spending commitments in our recommendations will have positive impacts on productivity via multiplier effects, and we used an established estimate of <\/span>2.74<\/a>\u00a0based on\u00a0<\/span>public investment in infrastructure after 5 years. This means that an increase of \u00a31 million per year in spending produces an increase of \u00a32.74 million in GDP.\u00a0<\/span>The initial spending commitments in this book total approximately \u00a3377bn, of which just over 70% is current spending rather than capital spending. However, current spending also has multiplier effects. For example, additional spending on the NHS contributes to a healthier workforce with lower levels of premature mortality and morbidity and better mental health. Basic Income also has positive multiplier effects on <\/span>health<\/a>. We assume that the multiplier impact of current spending is equal to one-third that of capital spending at 0.91.<\/span><\/p>

The estimated increase in GDP due to higher capital and current spending generates additional tax receipts from taxes on earnings and corporate profits as well as receipts from consumption taxes due to higher spending. Based on the current share of tax receipts in UK GDP, we assume that tax receipts increase by an amount equal to 40% of the increase in GDP.\u00a0<\/p>

Taking second round productivity impacts into account, we model an increase of just over \u00a3206 billion in tax receipts. This increases the total amount raised in tax from around \u00a3339 billion to \u00a3545 billion. The \u00a3339 billion of tax receipts is enough to fund the \u00a3308 billion of current spending commitments in our plans – including our starter Basic Income scheme – with \u00a331 billion left over. With \u00a3545 billion, it is possible to fund a Basic Income scheme at halfway to Minimum Income Standard scheme with almost \u00a326 billion to spare. Given longer-term positive productivity effects of this scheme and the other spending plans in this report, there is every reason to think that the UK would be able to afford a Basic Income payment to all individuals at the Minimum Income Standard level at some point in the not-too-distant future. This would be a huge and welcome achievement.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Political feasibility<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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In our Act Now survey, we found an average level of support for these kinds of reforms of 69.2% in the Red Wall, with 60.2% among Conservative and 80.5% among Labour 2019 voters. Nationally, approval was 72.6%, with 48.6% among those intending to vote Conservative, 76% among those intending to vote Labour and 66% among those who don\u2019t know who they will vote for or who don\u2019t intend to vote at present. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Act Now: Costs, benefits and funding “Act Now: Costs, Benefits and Funding” by the Common Sense Policy Group is licensed under CC BY-NC-ND 4.0 (https:\/\/creativecommons.org\/licenses\/by-nc-nd\/4.0\/) We analysed the policy reforms outlined in the report using a model of the relationship between Gross Value Added (a measure of economic output) and public and private spending on […]<\/p>\n","protected":false},"author":12,"featured_media":0,"parent":3831,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-site-content-layout":"full-width-container","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-4517","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\nCosts, Benefits and Funding - 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