Ever noticed a Wilkes’ Gob?
You may well have seen one at some point, if you’ve spent any time in Leicestershire (although you were probably looking at the beautiful countryside).
Or you might have seen something similar if you’ve been to Brick Lane in Shoreditch (although you were probably looking at the beautiful selection of curries).
A Wilkes’ Gob is a type of brick. Specifically, a double-sized brick:
Source: Wikimedia Commons, Measham, Leicestershire, Wilkes’ Gob on the left
In 1784, the British government needed cash to cover the cost of the American War of Independence. And with new towns springing up as the Industrial Revolution took hold, MPs imposed a “brick tax” of 2 shillings and sixpence for every thousand bricks produced.
The result? BIGGER BRICKS. For fifteen years, until the government closed the loophole.
The Wilkes’ Gob is a wonderful real-world example of why clever tax ideas often don’t produce sensible outcomes – people find other solutions.
Ahead of the budget in a few weeks, here are a couple of the other more … quirky … taxes in British history; and the resulting behaviour, which very rarely involved paying the tax!
The Hat Tax was also introduced in 1784 (expensive, that war!). The idea was that richer people would have more hats, so would have to pay more tax. Quite aggressively, the punishment for forging hat-tax stamps was death! Of course, people either stopped wearing hats, or started wearing these new-fangled things called “caps” which were exempt!
The Window Tax (1696). In the 17th century, most people thought the government had no business asking them about their income. So when William III needed to raise money, he had to do it based on things his revenue officers could count. Like windows. More windows = bigger house = more money = more tax. Result – bricked up windows all across the country (which you can still see). And, allegedly, the creation of the phrase “daylight robbery” to describe the tax.
But. The most surprising tax fact we learned during our research: until 1990, in the UK, a married woman’s tax rate was the same as her husband’s! (Her income was simply added to his to determine the tax rate paid) And when that rule changed, with the advent of independent taxation, the UK workforce saw a significant uptick in female workers.
Tax isn’t just about the numbers. It’s about the behaviour.
I’ll share a more considered take on the Budget once the details are out. For now, the speculation isn’t helping anyone — and Reeves’ rather cryptic remarks yesterday didn’t exactly bring much clarity!
As always, if you have any questions about this piece or any other finance-related matter, please do not hesitate to contact me.
Yours sincerely,
Graham Ponting CFP Chartered MCSI
Managing Partner
