The next problem is that this approach makes tax revenues even more dependent on the state of the economy. With a flat-fee tax, such as the TV licence, you pay it whether you’ve got a job or not. But the more the Government leans on the “big three” taxes, the more it loses if we stop spending, or stop working. And this is where the current shortfall in income tax comes from. Yes, people still have jobs – and yes, thousands more are being created all the time. But they’re not paying very well. The TUC pointed out this week that pay rises have now been below inflation for seven years in a row, making this the worst cost-of-living crunch since the 1860s. But the process has been going on for much longer: the average UK salary, of £27,017, is worth £1,500 less in real terms than it was in 2000.