At a time when we are seeing record numbers of people in the UK having to go to food banks to survive, out Government is still committed to sending 0.7% of our income each year to other countries in aid. Most famously, we are sending £500m a year in aid to India, the world"s eigth largest economy - an economy so large that they can afford to have a space programme rather than feed their own people!
Part of the problem is that the Indian Government only raises enough tax to equate to 3% of GDP. In the UK tax is about 38% of GDP.
Now it has been announced that the UK government will help Pakistan, another recipient of vast amounts of aid, to raise taxes equal to 15% of its GDP.
If overseas raised more realistic amounts of tax, the aid budget could be slashed and the money re-deployed at home to fix our own problems faster say Harris & Co accountants Northampton.