Daily Junction.mobi portalThird, equalise capital gains tax and income tax. Tax capital gains at the same rate as income (20-45%), not half the rate (10-20%). This would raise £15 billion per year.
Fourth, build social housing and regulate the rental market. High housing costs are the main driver of wealth inequality. Building 100,000 social homes per year and introducing rent controls would reduce housing costs and prevent wealth extraction by landlords.
Fifth, increase the minimum wage and strengthen workers' rights. Low wages prevent wealth accumulation. Increasing the National Living Wage to the real Living Wage (£12.00 per hour, £13.15 in London) would allow low-income workers to save and build wealth.
The wealthiest 1% of UK households own £3.5 trillion in wealth, more than the bottom 70% combined. Median household wealth is £302,500, but the top 10% own £1.5 million+ while the bottom 10% have negative wealth (debt). Property wealth accounts for 60% of total household wealth, locking out younger generations unable to access homeownership. The UK has lower wealth taxes than comparable countries: no annual wealth tax, no inheritance tax on most estates, capital gains taxed at half the rate of income. Wealth inequality is higher than income inequality (Gini 0.63 vs 0.35) and has grown faster since 2010. A 1% annual wealth tax on wealth above £1 million would raise £10 billion per year and affect only the wealthiest 5%. The question is whether we have the political courage to tax wealth as we tax work.