December 10, 2019

Cost of Corbyn: Labour's plans for 108 new taxpayer funded quangos revealed

New analysis shows that Labour’s manifesto commits to creating over 100 new quangos, with a total cost of £13.2 billion over the next five years – costing every taxpayer in the country £425.

The analysis shows:

  • Pledges in Labour’s 2019 manifesto alone commit to the creation of at least 108 new quangos - unaccountable public bodies paid for by the taxpayer.
  • The running costs of these new quangos will be a minimum of £1.86 billion per year - adding up to £9.32 billion over five years.
  • This is on top of another £3.93 billion in upfront costs which will be required to set up and finance these quangos.

Running costs over 5 years £9.32 billion
One off set up costs £3.93 billion
Total cost over 5 years £13.2 billion
Cost per taxpayer
(Total no. UK taxpayers: 31,199,000)
£425

Corbyn’s unnecessary quangos include:

  • The Agricultural Wages Board and School Support Staff Negotiating Body which were previously abolished as their functions were no longer needed or were already better carried out by other means.
  • The English Sovereign Land Trust which would duplicate functions already carried out by existing bodies like Local Authorities.
  • The resurrection of New Labour’s failed network of Government Offices of the Regions and Regional Development Agencies which cost taxpayers hundreds of millions every year and were abolished for providing bad value for money for taxpayers.

Worse still, Corbyn plans to abolish crucial organisations such as Ofsted – which keeps our children safe. Another example – his proposed Workers’ Protection Agency – would effectively be a taxpayer-funded enforcement arm of the trade unions, with huge power not only to take regulatory and enforcement action against businesses but also to bring full-on legal action against them.

Responding, Chief Secretary to the Treasury Rishi Sunak said:

“Jeremy Corbyn's plan to set up over a hundred new quangos will hugely increase bureaucracy and waste in government. Corbyn’s new quangos range from the pointless and profligate to the deeply damaging and sinister. I am particularly concerned that they will hugely increase the power of their chums in the trade unions which will mean more strikes and more gridlock.
"The British people have worked hard to repair the damage done to our economy by the last Labour Government, we shouldn't let Corbyn throw it all away. His reckless spending spree will cost every taxpayer an extra £2,400 a year. The British people don't want more quangos and bureaucrats, they want us to fund more nurses, doctors and police on our streets.
"We can't afford the cost of Corbyn and we can't afford his plan for two more referendums and the dither and delay it will cause. Vote Conservative to get Brexit done, keep taxes down and to keep our economy strong."

Region Labour's Pension Tax (£) Extra Months to Work
England 11,167 44
East Midlands 6,150 50
Greater London 12,871 45
North East 9,758 38
North West 6,835 47
South East 14,270 40
South West 7,407 45
West Midlands 10,729 41
Northern Ireland 13,718 35
Scotland 10,653 41
Wales 11,691 36
United Kingdom 11,253 43

Commenting, Therese Coffey, Secretary of State for the Department of Work and Pensions, said:

“Corbyn’s Pension Tax will see ten million savers facing a huge bill forcing them to delay their retirement for almost three and a half years.
“This is just one of the ways a Corbyn government would hammer hardworking people on top of his plans to hike up taxes by £2,400 a year, as well as the cost of his plan for unlimited immigration and the chaos of 2020 being dominated by two more referendums – one on Brexit and another on Scottish independence.
“Only Boris Johnson and the Conservative Party can get Brexit done with a deal, get parliament working again and turbocharge our economy to unleash Britain’s potential.”

Read more about how this Pension Tax will impact millions of savers (PDF)