Budget Must Tackle Wealth Inequality To Fix Our Broken Services
Christian charity the JustMoney Movement has called on the Government to use the upcoming Budget to tackle unfair aspects of the tax system, which would help address soaring wealth inequality whilst raising revenue for desperately underfunded public services.
The JustMoney Movement is calling for the Government to introduce an annual wealth tax of 1-2% on assets over £10 million. This could raise an estimated £24 billion, helping to meet the ‘black hole in the public finances’ that the Government has identified. It would also help address the situation whereby the richest 1% of people in the UK hold more wealth than 70 per cent of the rest of the population whilst almost 4 million people cannot afford the very basics in life, such as food and warmth.
The charity is also calling for reforms on existing taxes on wealth, such as equalising capital gains tax (CGT) with income tax and removing some reliefs on CGT and inheritance tax, to make these taxes fairer and raise billions further in revenue. It’s estimated that the poorest people in the UK pay an effective tax rate of 44% while those in the top 10% only pay 21%, in part because tax rates on wealth are much lower than those on work. At the same time, our hospitals, schools and criminal justice system are just some of the chronically underfunded public services in crisis.
Former Archbishop of Canterbury, Dr Rowan Williams said:
Soaring inequality is a major issue in our society, and is deeply damaging to our collective morale and trust. A wealth tax of the kind we are backing, along with meaningful reforms to existing taxes on wealth, recognises that vastly disproportionate rewards for a very small number of citizens will not make for a cohesive and just national community.
General Secretary of Churches Together in England and JustMoney Movement Patron, Bishop Mike Royal commented:
A fair tax system is a vital part of seeking the welfare of modern society – so that we can love our neighbours and care for the most vulnerable. We want to see reforms to the tax system – including a wealth tax – so that everyone contributes a fair share. We need a shift in the conversation so that tax is seen, not as a ‘burden’ to be avoided, but as a tool for ensuring that everyone can flourish.
JustMoney Movement Executive Director, Sarah Edwards said:
We need the Government to take meaningful steps towards the kind of society we’d all like to live in – one where our GP surgeries and schools are properly funded, where those who are struggling financially have a safety net that catches them, and where our natural spaces are protected. This needs revenue – but not everyone is paying their fair share. We must reform the tax system so that wealth is taxed in line with work.
