Graça dos Santos’ Post

On the £500m extra funding announced yesterday for social care services - Additional funding is always welcome in the extremely challenging local government financial environment. £500m might sound like a lot of money, but split among 153 councils who have social care responsibilities, it isn't going to go very far. At best, it might alleviate some of the worst cuts that councils might have otherwise had to make. The sticking plaster approach of emergency cash injections won't cut it anymore. There needs to be a new deal for local government finance, and we need to reform social care so that it is fit to meet current and future challenges. #socialcare #funding #localgovernment #reform

Globally, especially in western world, High-Net-Worth Individual (HNWI) venture into politics using their financial power. And their declared purpose is to serve their fellow citizens using the power that comes with a public office. At the same time, one thing is real too, that countries worldwide, struggle to keep them off public debt, which in turn has a direct effect on government's abilities to provide the public with better living conditions. So, if someone, especially these High-Net-Worth Individual (HNWI) from the ruling side, table a bill in the legislature or the government on its own comes up with a law. High-Net-Worth Individuals (HNWI) holding a public office are not eligible for any kind of pay for holding a public office. Then a lot of public tax money can be saved, which can then be diverted to serve the poor public, in form of better public infrastructure. Besides, this approach can help both executive and the (HNWI) earn a better image in eyes of the general public. Along with that, saving governments huge amounts of money, that is required to run a infrastructure whose ground level purpose is to serve the general public. 

Addressing Scotland’s Brain Drain: A Call for Taxation Balance As a business leader in Scotland, I’ve witnessed firsthand the challenges posed by the ‘brain drain’ phenomenon. This issue, where talented individuals leave for opportunities elsewhere, particularly England or don’t want to move up, is exacerbated by the current taxation policies on well-paid jobs in Scotland. The higher tax rates on well-paid jobs here are not just numbers on a spreadsheet; they translate into real-world decisions affecting where professionals choose to live and work. While it’s crucial for a nation to fund its public services and support the less fortunate, there’s a delicate balance to be struck. Overburdening the financially successful can lead to an exodus of talent, which in turn can stifle economic growth and innovation. In addressing Scotland's taxation and brain drain issues, it's crucial to adopt a holistic approach. Simply increasing taxes on higher earners without parallel strategies to boost the economy could be counterproductive, akin to a business raising prices without adding value, leading to the loss of customers to competitors. Instead, a more effective strategy would involve simultaneously attracting more businesses and nurturing talent. This can be achieved by fostering a conducive environment for innovation, offering incentives for businesses to set up shop in Scotland, and investing in education and training programs to elevate the workforce into higher tax brackets through better opportunities. By focusing on economic growth and talent development, Scotland can create a virtuous cycle where increased tax revenues come from a thriving, expanding base rather than from higher rates on the existing one. This approach not only retains talent but also makes the region more attractive to skilled professionals from elsewhere, countering the brain drain with a brain gain. It’s a complex issue with no easy solutions. However, one thing is clear: if Scotland wants to retain and attract top talent, we need to reassess our approach to taxation. This isn’t about giving breaks to the wealthy; it’s about creating a competitive, fair environment that encourages people to build their careers and lives here. What are your thoughts on this? How can Scotland better balance its taxation policies to both support its social programmes and retain its skilled workforce? #Scotland #BrainDrain #Taxation #BusinessScotland #EconomicGrowth

Public services have been struggling financially for some time, and understandably, many local authorities have been focusing on short-term measures to plug the finances, especially as there are few efficiencies left to be found. Public Sector IT and data infrastructure is in dire need of significant investment, and perhaps today’s announcement will help focus investment on IT and digitalisation. But transformation takes time and local authorities are facing significant issues in the here and now. Just earlier this month, we saw 19 of the most challenged local authorities permitted to fund £1.5bn of day-to-day spending through capital flexibilities which will be funded through borrowing or selling assets. https://lnkd.in/ei_sYtxf

Co-authored with Dr. Ikramul Haq “ The need for governance reforms” Earlier in May 2024, the media had reported that the prime minister had proposed rigorous austerity measures ahead of the forthcoming budget. These included abolition of approximately 70,000 positions in BS 1-16 and restructuring or merging of nearly 80 federal government entities. The recommendations were aimed to achieve substantial savings, including Rs 200 billion from subsidies, Rs 200 billion from development expenditures, Rs 55 billion from civil government operations, Rs 60-70 billion through the single treasury account, Rs 100 billion from conservation initiatives, Rs 174 billion from divesting non-strategic state-owned enterprises, and potentially up to Rs 1 trillion annually in medium-term savings, particularly through a proposed 15 percent reduction in non-combat defence expenditure. The media further reported that the government faced a significant challenge with its growing wage and pension obligations. The budget has allocated Rs 839 billion for running the civil government and Rs 1.04 trillion for pensions (Rs 662 billion for military and Rs 220 billion for civilians).

Our response to yesterday's budget provides some clarity around the non-dom regime and the chancellors pledges to help build on permanent full expensing for capital expenditure and to widen the benefit to leased assets. #springbudget2024 #grantthornton #financialplanningandanalysis

A worrying article regarding the state of solvency of local authorities in the U.K. At least 26 local councils are identified as at risk of being bankrupt and the size of deficits are huge! The issue highlighted is rise in inflation costs, poor investment decisions and children’s/social services. It’s clear the only way to offset inflationary wage pressures is to either improve staff productivity or reduce staff and I think it would be much better to share instances where local authorities have been beacons of best practice hear. Sometimes, expecting the public purse to just open and pay more isn’t the answer but at the same time there will be councils who have created genuine savings (rather than easier ones like selling property or land to developers etc) and it’s those than need to be talked about! Either way it’s not going to be great for council tax payers who are getting more disgruntled at having to pay more and see less value. Interesting times for many in the public sector and true leadership will be required to navigate the next decade. I won’t go onto discussing the local government pension scheme deficits but I do believe there needs to be an intervention and a hair cut for participatants taken here at some point too!

The UK Spring Budget 2024 proposes changes to the tax system for non-UK domiciled individuals, shifting towards a residence-based approach. As non-dom benefits are gradually reduced, could 𝙄𝙨𝙡𝙚 𝙤𝙛 𝙈𝙖𝙣 structures present alternative opportunities for wealth management? Upon reading this article, you'll gain a deeper understanding of the 𝙄𝙨𝙡𝙚 𝙤𝙛 𝙈𝙖𝙣. Read more: https://lnkd.in/dtf2fJED Connect with our specialists today! Get a free consultation: 📞 +44 1624 817494 | 📧 enquiries@charterhouseiom.com. #ReDomiciliation #TrustStructures #IsleofMan #WealthManagement #TCSP #CSP #OffshoreCompanyFormation

My latest Financial Post article discusses the release of the capital gains inclusion rate increase legislative details yesterday by Chrystia Freeland & Finance Canada / Finances Canada. From the article: “In a blaze of rhetoric that partisan politicians and their followers would be proud of, Finance Minister Chrystia Freeland finally released some of the legislative details about the proposed change to the capital gains inclusion rate… The detailed material is, not surprisingly, complex...However, it clarifies a number of open questions that practitioners and taxpayers had, including: - Confirmation that corporations and most trusts will not get access to the $250,000 threshold. The exception is that certain estates and trusts for the benefit of the disabled will get access to this threshold. - Individuals will not be able to share the $250,000 threshold with their associated corporations… - There will not be a delay in the implementation of the proposal until Jan. 1, 2025… - There are no elective disposition provisions that enable a taxpayer to trigger gains with pre-June 25, 2024... - There are detailed technical transitional rules for trusts that can enable pre-June 25 trust dispositions to be treated by beneficiaries as being realized pre-June 25…Ditto regarding partnerships and their partners… The release of the details of the proposal will be remembered for two things. The first is that the government ignored almost every single recommendation made about the proposals by very qualified people and great organizations... The second thing that will be remembered is the offensive and misleading messaging... Upon release of the material, Freeland went one step further and basically asserted in a bizarre “speech” that the capital gains proposal was necessary to help hungry kids and pregnant teens… The most offensive quote in her speech: “Do you want to live in a country where those at the very top live lives of luxury, but must do so in gated communities behind ever higher fences, using private health care and airplanes because the public sphere is so degraded and the wrath of the vast majority of their less privileged compatriots burns so hot?”… For those who believe the messaging and think it is necessary to solve income and wealth inequality, think again... Those who have been successful will continue to look for greener pastures outside Canada…It’s sad... The economic consequences of this government’s attempt to win votes from those who don’t appreciate the importance of encouraging success will be disastrous. Mark my words. As a proud Canadian, I’m concerned and sad about such divisiveness and poor policy.” This is disgusting politics and poor taxation policy. People keep asking me “well, Kim, what you do instead?” You know what I’d do?? I’d cut wasteful spending, revamp the entire taxation system to make it simpler and ensure it doesn’t punish success. Canada needs to celebrate success. Not punish it.

"#Billionaires, globally, are paying a #taxrate equivalent to less than 0.5% of their #wealth," the letter, which Oxfam helped coordinate, states. "Trillions of dollars that could have been productively invested in communities, #education, #health, and #infrastructure have instead been unproductively accumulated by the ultra-wealthy....Zucman, founder of the EU Tax Observatory, calls for a 2% annual tax on billionaire wealth, which he said would raise $200 billion to $250 billion per year from about 3,000 individuals." https://lnkd.in/eGevAghj