Two thirds of Wales, along with many of the former Soviet Bloc countries, is classed as one of the poorest regions in the European Union. This why we have qualified for yet another round of funds from the European Commission, after receiving £1.3 billion of Objective 1 money during the period 2000-2006.
Counties such as Anglesey, Torfaen, Swansea and Pembrokeshire are classed as economically poor as Poland, Hungary and the Czech Republic.
Whilst the aim of this financial bonanza from Europe was to increase prosperity across the poorest parts of Wales, the evidence, to date, is mixed as to whether that has been achieved.
Nevertheless, a partial success of this programme has been to get more people who have previously not worked into employment, albeit within lower paid jobs than expected. However, whilst thousands of jobs have been created, the overall prosperity of the area continues to fall relative to the UK.
How can this make sense?
If we are getting more people into jobs, then surely the overall wealth of a region must also increase? Perhaps part of the answer lies not with Cardiff Bay, who control this programme, but with Westminster and, more specifically, the Chancellor of the Exchequer.
According to HM Treasury data released recently, some of the poorest households in the UK are paying the highest rates of tax. In Wales, encouraged by employment projects developed under the Objective 1 programme, thousands have made the effort to get off the benefit system and into jobs earning well below the national wage average.
However, if they earn more than £142 a week, then they are allowed to keep just 30p in the pound of every £1 they earn about this level.
Ironically, this seems to suggest that those who do make the effort to come off benefits to find a job are actually worse off than if they stayed being reliant on the state.
Therefore, perhaps one of the reasons that the thousands of low paid jobs being created in the fifteen poorest counties in this nation are having very little effect on Welsh prosperity of the nation is that the majority of the money being earned is actually being returned to London!
Do we need a reform of the taxation and benefit system in this country? I certainly think so as we need to encourage and rewards those who get off their backsides to seek opportunity as opposed to living off the state.
It is simply not right that the poorest households in this country who are working are paying a large part of their income to the Treasury in direct and indirect taxation.
Taxation should be about fairness and the ability to pay and if we are to encourage a more prosperous society, then that fairness must start with the poorest in our nation.
Let’s hope the politicians are listening otherwise the hundreds of millions of pounds which are about to be poured into the poorest parts of Wales for the second and last time may have very little effect on making this country more prosperous.
Counties such as Anglesey, Torfaen, Swansea and Pembrokeshire are classed as economically poor as Poland, Hungary and the Czech Republic.
Whilst the aim of this financial bonanza from Europe was to increase prosperity across the poorest parts of Wales, the evidence, to date, is mixed as to whether that has been achieved.
Nevertheless, a partial success of this programme has been to get more people who have previously not worked into employment, albeit within lower paid jobs than expected. However, whilst thousands of jobs have been created, the overall prosperity of the area continues to fall relative to the UK.
How can this make sense?
If we are getting more people into jobs, then surely the overall wealth of a region must also increase? Perhaps part of the answer lies not with Cardiff Bay, who control this programme, but with Westminster and, more specifically, the Chancellor of the Exchequer.
According to HM Treasury data released recently, some of the poorest households in the UK are paying the highest rates of tax. In Wales, encouraged by employment projects developed under the Objective 1 programme, thousands have made the effort to get off the benefit system and into jobs earning well below the national wage average.
However, if they earn more than £142 a week, then they are allowed to keep just 30p in the pound of every £1 they earn about this level.
Ironically, this seems to suggest that those who do make the effort to come off benefits to find a job are actually worse off than if they stayed being reliant on the state.
Therefore, perhaps one of the reasons that the thousands of low paid jobs being created in the fifteen poorest counties in this nation are having very little effect on Welsh prosperity of the nation is that the majority of the money being earned is actually being returned to London!
Do we need a reform of the taxation and benefit system in this country? I certainly think so as we need to encourage and rewards those who get off their backsides to seek opportunity as opposed to living off the state.
It is simply not right that the poorest households in this country who are working are paying a large part of their income to the Treasury in direct and indirect taxation.
Taxation should be about fairness and the ability to pay and if we are to encourage a more prosperous society, then that fairness must start with the poorest in our nation.
Let’s hope the politicians are listening otherwise the hundreds of millions of pounds which are about to be poured into the poorest parts of Wales for the second and last time may have very little effect on making this country more prosperous.
Comments
If you are poor, your lifestyle would indicate that you spend more on smoking drinking and fuel than someone with a richer lifestyle.
This is also money which goes back to the government.
What would make the biggest difference to Wales would be if it was given tax lowering power. Ideally, making the region a flat tax haven would not only help increase the incentive for the private sector to grow in Wales, it would also make the whole system fairer.
Not that we'll ever see it here - but wouldn't it be nice?
They couldn’t find jobs -Powys is not awash with jobs after all.
they were just so fed up
They wanted to contribute to the economy
Just no help to do that
People of all backgrounds and income are sick and tired of our ancient tax laws.