UK budget falls short of promise to build a fairer economy

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The government’s steps towards a fairer tax system in today’s budget are welcome, but more must be done to ensure the super-rich pay their fair share and help build an economy that works for everyone.

“

One hundred days ago, the Prime Minister promised to deliver a new economic model and to put care of people at the heart of everything he does. While this budget is billed as easing the squeeze on household budgets, the small tax rise on banks making record profits in recent years and wider reforms are a disappointing downpayment on that promise.”

Jean McLean, Chief Influencing Officer at Oxfam GB

Jean continued:

"The changes fall short of the comprehensive package of reforms needed to ensure the super-rich and big polluters pay their fair share to help invest in an economy that works for everyone.

“Building a fairer future means tackling poverty and investing in public services at home without short-changing communities facing climate devastation and humanitarian crises, or underfunding commitments to advance gender justice globally.

“Meaningful progress on global tax justice is essential. Inequality is a political choice and so are the solutions.”

Today's budget comes against a backdrop of a growing global inequality. Oxfam's analysis shows that the richest 56 people in the UK now own more wealth than the poorest 27 million people combined. Globally, billionaire wealth has reached a record $18.3 trillion, the number of billionaires has surpassed 3,000 for the first time, and billionaire wealth has grown by 81 per cent since 2020.

Oxfam has also warned that extreme wealth is increasingly translating into political influence, with billionaires estimated to be around 4,000 times more likely to hold political office than ordinary citizens.

A wealth tax should be part of a wider package of reforms to make the tax system fairer, including equalising capital gains tax with income tax and closing tax loopholes.

Recent Oxfam polling found 76% of Britons support a 2% tax on assets over £10 million, while 71% believe the economy currently works mainly in the interests of the wealthy rather than ordinary people.

Demand a Wealth Tax now

A 2% tax on wealth over £10m could raise £24 billion a year.

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