Dear colleague,

Foreword from the Director of the SMF, James Kirkup.

We sometimes talk about Westminster as a place of “national debate”. In truth, our national debate misses out many issues – and people – entirely.

For hundreds of thousands of people, most of them poorer than average, Further Education can be a vital route to skills and qualifications. Yet FE budgets have been slashed, staff are deserting and its leadership lacks support.  And Westminster, dominated by university graduates, pays little attention.  In-work poverty is also neglected: more than 8 million people are in households that are poor even though they have work. If work isn’t a route out of poverty, something is badly wrong. Meanwhile, Westminster puzzled over Boris Johnson’s bus-building hobby. The real bus story – the role bus travel plays in economic and social mobility outside the capital - was, as ever, ignored.

Just over three years ago, Westminster was surprised when 17.4 million people voted to reject the entire British political-economic settlement. Three years on, the greatest surprise is how little politics has learned from that shock.

Best,

James Kirkup

Report Highlights

Leading skills: Paper 2 - Policies for strong leadership in Further Education colleges​
by Nigel Keohane​ 

This report argues that a shift in mindset is needed to promote and strengthen leadership in further education colleges. Alongside reforms to the system, cultural change is necessary in the sector and beyond. This comes as an early attempt towards prompting a bigger, deeper discussion about leadership involving sector bodies, colleges, the Department for Education, politicians, learners, and those who do the training and development alike.

Full Report.

TES
FE losing 1 in 5 teachers each year due to 'neglect'
 

Pay Progression for Low-Paid Workers
by James Kirkup, Scott Corfe, Kathryn Petrie, and Nicole Gicheva​

Labour market experiences are at the very heart of the political and policy debate about the modern economy. There is a growing sense that work is no longer providing a reliable route to better living standards and social mobility. This research seeks to understand whether and how government can use tax and regulation policy to promote wage progression and career progression among low-paid workers.

Full Report
 

Uncollected tax revenue – who is underpaying and what we should do about it 
by Arun Advani (Centre for Competitive Advantage in the Global Economy)

A third of self-assessment taxpayers do not pay as much tax as they should. That means the Treasury is missing out on £8 billion a year, a significant part of the £30 billion annual "tax gap". Dr Advani's research shows that by funding more tax audits, HMRC would be able to bring in billions in extra revenue for the Exchequer - enough to pay the wage of each new auditor hired and four extra NHS nurses.

Full Report

The Times
Want extra nurses and police? Give the taxman more auditors

Financial Times
Treasury ‘loses £8bn a year’ from self-assessment under-reporting

The Mirror
Millions of Brits lying about how much tax they owe – the facts about tax returns

Comment

Politicians need to recover their affection for the man on the omnibus
by Scott Corfe

Although buses lack the glamour of the car or high-speed rail, they provide an essential service to millions of people across the country. Disproportionate coverage of rail woes in the media distorts political discourse on public transport. With bus networks declining and prices rising proportionately faster than rail fares, is it not time for politicians to reconnect with their friend on the omnibus?

Continue reading here.

Corporate tax cuts should be dependent on businesses doing the right thing​
by Kathryn Petrie

More must be done to help low-paid workers achieve wage and career progression. Both potential future leaders of the Conservative Party have promised a variety of tax cuts – but will these benefits be passed on to the lowest paid in society?

Continue reading here.

Free SMF Events in July

 Ask The Expert: The Future of Housing in the UK (Panel Discussion)
​Three policies for the new Prime Minister

Thursday 4 July
12:30 - 13:30 with refreshments and registration from 12:00
24 Tufton Street | Mary Sumner House (Mothers' Union)
​ 
With a new Prime Minister about to step behind the door of No. 10, is the time ripe for a new approach to housing in the UK?

In the latest of our Ask the Expert series, held in partnership with the Economic and Social Research Council, a part of UK Research and Innovation, the SMF is convening an expert panel to address the current state of housing in the UK and what opportunities lie on the horizon.