Budget Day call to Chancellor to tax the super-wealthy not those least able to pay
On Budget Day the NPC challenges Chancellor Rachel Reeves to prove that she really will place the burden of fixing the UK economy on those with the broadest shoulders – the super-rich?
Keir Starmer said back in August that today’s Budget “is going to be painful” and "those with the broadest shoulders should bear the heavier burden" to fill the £22bn hole in the economy.
But it remains to be seen if this means those for whom an extra 2% wealth tax – the UK’s richest 250 families sitting on combined wealth of £748bn* – will feel any real pain at all from this Budget. Or whether it will be those – like the UK’s oldest and most vulnerable who, proportionately will be the biggest losers – just as millions have with the loss of the Winter fuel payment. The NPC is still actively campaigning for these payment cuts to be reverse.
Jan Shortt, NPC General Secretary said: “The NPC wants to see a fairer tax system, and most agree it is the broad shoulders who should carry that burden – but who are they? The rich who increased their wealth multiple times during and since the pandemic. Or those whose low and largely fixed incomes, through no fault of their own rely on state policy decisions.
A levy of 1% or 2% on those broad shoulders would not be missed but could do so much for those living in poverty and on the cusp – and there is growing demand for this to be implemented by government. A group of cross party MPs** have just presented a 50,000 signature petition organised by Green New Deal Rising, proposing a 2% annual tax on wealth of over £10 million which would raise £24 billion a year. And the Patriotic Millionaires*** have also called for a wealth tax.
The argument for change is irrefutable. It is shocking that recent research shows that the world’s top three tax havens are all British Overseas Territories – British Virgin Islands, Cayman and Bermuda. The UK is responsible for 33% of corporate tax abuse and has, since 2022, obstructed the UN in its quest to bring about global policies on fair taxation to fruition. We would sincerely hope the new government will engage more proactively and ensure that the UK gets its rightful tax income.
The moral principles of government seem to be lost. A government that is genuinely in favour of the people would set a budget that tackles poverty, not creates more of it.
We don’t need stealth taxes – like freezing tax thresholds so more of the poorest and lowest paid fall into the tax bracket.
Do the right thing today Chancellor - find the moral compass to do what is right for the many.”
*The Sunday Times rich list says 250 families in the UK are sitting on combined wealth of £748bn - https://www.theguardian.com/news/2023/may/29/2-tax-uk-rich-list-families-raise-22bn-year-reform-inequality#:~:text=The%20richest%20250%20families%20in,%C2%A3704bn%2
ENDS
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