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In 1964, when the then Chancellor of the Exchequer James Callaghan made a speech announcing his intentions to make changes to the tax system, including the introduction of a capital gains tax and a corporation tax…
… he could have had no idea what one of the unintended consequences were going to be.
Four financial professionals:
- a banker and later Conservative Party politician Will Hopper,
- an investment trust manager Bob Buist,
- a stockbroker Nils Taube,
- and a tax consultant John Chown…
... thought the proposals ‘half baked’ and wouldn’t work.
Callaghan bashed on regardless but the famous (or perhaps not so famous) four, felt that no such far reaching tax changes should be possible without prior research as to their consequences.
After a lot of debate and dinners at a restaurant, in London’s North Audley Street, in 1969, the four decided to create the Institute for Fiscal Studies.
Mervin King, who was later to become the governor of the Bank of England, got a job there.
If there is one organisation that is worth paying attention to, it is the Institute for Fiscal Studies.
They are the preeminent number-crunchers for all matters tax and spend. When you can hear the tapping of the keys on their calculator… pay attention.
Yesterday, the IFS released a report telling us;
'...since the COVID-19 pandemic, over half of the increase in disability benefit claims among working-age adults is due to mental health conditions such as depression, anxiety, and behavioural disorders.'
Currently, 2.9 million working-age adults are claiming disability benefits, an increase of 900,000 from pre-pandemic levels, with 500,000 attributing their main condition to mental health issues.
What has happened to the nation’s mental health?
Some say the principle impact has been the Covid pandemic. It exacerbated existing inequalities and introduced new ‘stressors’, leading to a significant decline in mental health across various demographics.
Well, who am I to argue? However...
... during World War ll, my parent’s generation endured night after night, bombing raids, The Blitz as it was called.
The sustained bombing campaigns created widespread trauma, yet studies suggest that civilians demonstrated remarkable resilience.
Some historians argue that the so-called ‘Blitz spirit’ helped people cope.
Millions of children were evacuated from cities to the countryside, leading to separation trauma and long-term psychological effects.
Rationing and post-war austerity led to economic hardship and food shortages and contributed to chronic stress and depression in the post-war years.
Soldiers came back from combat, many with ‘shell shock’ and battle fatigue… something, today we would call PTSD.
The Tavistock Institute, a leading research body, conducted studies on war trauma and mental health rehabilitation, and the 1946 Birth Cohort Study tracked the health and well-being of people born immediately after the war, offering insights into childhood development and stress in post-war Britain.
What’s the difference between then and now?
The biggest factors?
Changing attitudes and political policies.
While, in the post war years, mental health issues were still stigmatised, post-war policies focused on social security and housing aimed to reduce economic stress that so often is the contributing factor to poor mental health.
Today, there is a growing awareness and reduced stigma around mental health, which is a good thing...
... and must have led to more individuals acknowledging and seeking help for their conditions, which, in turn results in higher reporting and diagnosis rates… but…
… I question the policies. Social and economic factors. Job insecurity and financial stress must be the key factors that have a negative impact on mental health well being.
In November last year, The Trussell Trust calculated that a single adult in the UK needs...
... at least £29,500 a year to have an acceptable standard of living. Up from £25,000 in 2022.
Two partners with two children would need £50,000, compared to £44,500 in 2022.
Here’s the kicker… roughly 29% of the UK population, equating to 19.2 million people, belong to households that bring in below this minimum figure.
In 2022, approximately 3.7 million homes in England were classified as 'non-decent,' accounting for about 15% of the total housing stock.
In the Private Rented Sector, approximately 20% of privately rented homes were classified as 'non-decent' in 2022.
Since 2019 the NHS has experienced a 36% increase in patients seeking mental health services.
There is no way the NHS has the capacity to cope with that and there is nowhere near enough productivity to create the jobs and wage security and fix housing, to avoid the numbers getting bigger.
Labour’s plan to cut benefits won’t solve the problem. It'll very likely make it worse.
Policies cutting the root causes of people needing benefits, like safe homes and decent jobs...
... would seem much more sensible.
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