Rich List: Huge gains of wealthiest should be taxed more to help households with cost of living crisis, says IPPR

As Sunday Times Rich List shows record number of UK billionaires, their gains should be taxed the same as income from work

• Huge increases in wealth at top during pandemic shows how ‘wealth often begets more wealth’, think tank says
• Calls for redistribution through higher taxes on income from wealth, and scrapping council tax for a new, proportionate property tax

Reacting to publication of this year’s Sunday Times Rich List, George Dibb, head of the IPPR think tank’s Centre for Economic Justice, said:

"As we enter a once-in-a-generation cost of living crisis the Sunday Times Rich List shows us again that vast wealth often begets more wealth. That has proved particularly true during the pandemic, when the wealthiest accumulated more wealth than poorer people who saved nothing.

“Now there are more billionaires in the UK than ever before and the collective wealth of the richest has grown again.

“We need to look urgently at ways to support the households most exposed by this new price crisis, and that should include redistributing the wealth gains of the richest to pay for higher social security benefits for those who most need them.

“That means reforming the tax system so that income from wealth - capital gains - is taxed the same as hard-earned income from work. It’s also time for a fair, proportional property tax to replace the regressive system of council tax. Those with the broadest shoulders should be contributing more.

“At the same time we should scrap so called ‘non-dom’ status through which the wealthy avoid tax by spending time abroad.”

ENDS

George Dibb, head of the IPPR think tank’s Centre for Economic Justice, and other IPPR economists are available for interview

CONTACT

Robin Harvey, Digital and Media Officer: 07779 204798r.harvey@ippr.org

NOTES TO EDITORS

1. IPPR has previously argued for:
   
   - Income from wealth to be taxed at the same rate as income from work by increasing the rate of Capital Gains Tax to the same as Income Tax, and removing certain allowances (Just Tax) https://www.ippr.org/research/publications/just-tax
   
   - Ending non-domiciled status tax exemption (A Wealth of Difference)
   https://www.ippr.org/research/publications/a-wealth-of-difference
   
   - Scrapping council tax and stamp duty and replacing them with a fair and uniform Proportional Property Tax (Pulling Down the Ladder)
   https://www.ippr.org/research/publications/pulling-down-the-ladder
2. IPPR has also argued for a windfall tax on the excess profits of companies extracting oil and gas

IPPR is the UK’s pre-eminent progressive think tank. With more than 40 staff and offices in London, Manchester, Newcastle and Edinburgh, IPPR is Britain’s only national think tank with a truly national presence. www.ippr.org