Britain is one of the most unequal countries in the OECD. The richest 10 percent of households hold 43 percent of all the country’s wealth, while the poorest half own just 9 percent.
A new survey shows Brits overwhelmingly support a wealth tax on the ultra-rich. According to recently-released YouGov polling, two-thirds of UK voters support a 2 percent tax on individuals with wealth over £10 million. Experts estimate such a levy could generate around £11 billion annually.
Support for the policy spans the political spectrum. 88 percent of Labour voters are in favour, alongside 83 percent of Liberal Democrats, 61 percent of Conservatives, and even 55 percent of Reform supporters.
The polling comes amid growing speculation that Labour may consider implementing a wealth tax, despite previous assurances from the Chancellor that the party had no such plans.
The current tax system favours the wealthy by taxing income from assets, such as dividends and capital gains, at much lower rates than income from work.
Britain is one of the most unequal countries in the OECD. The richest 10 percent of households hold 43 percent of all the country’s wealth, while the poorest half own just 9 percent. As of 2023, the combined wealth of the UK’s 50 richest families surpassed that of 34.1 million people, more than half the population.
Proponents argue that a wealth tax could help redress these imbalances. Jake Atkinson of Tax Justice UK, a campaign group advocating for fairer taxation, said:
“Inequality has skyrocketed. We have millions on NHS waiting lists, queues for food banks, millions of children in poverty, and then at the very same time, there are very, very rich people who have massive, massive amounts of wealth, which is currently under taxed. It’s an open goal for the government.”
Critics, however, warn that a wealth tax could damage investor confidence and drive high-net-worth individuals to relocate to avoid higher taxes.
Which European countries have a wealth tax?
At present, only three European countries impose a net wealth tax, Norway, Switzerland, and Spain. France and Italy tax specific types of assets but not on an individual’s net wealth
Spain levies a progressive net wealth tax ranging from 0.16 percent to 3.5 percent on wealth above €700,000, although rates vary significantly by region. Some areas, including Madrid and Andalusia, offer a 100 percent exemption. In addition, a temporary “solidarity wealth tax” was introduced in 2022 and 2023 for individuals with net assets over €3 million. This tax ranges from 1.7 percent to 3.5 percent and is collected by the central government.
Switzerland applies its wealth tax at the cantonal level, with tax rates and exemptions varying across the country. It covers global assets, excluding real estate and permanent establishments located abroad, and has been in place since 1840.
Norway levies a net wealth tax of 1 percent on individuals’ wealth stocks exceeding €150,000, with 0.7 percent going to municipalities and 0.3 percent to the central government. Norway’s net wealth tax dates to 1892. Additionally, for net wealth exceeding $1.94 million, the tax rate is 1.1 percent.
Speaking in Parliament this week, Labour MP Richard Burgon, who has long called for a wealth tax, said it was great to see support for the proposal “growing stronger by the day.”
“The government should grasp the nettle,” said Burgon, “and introduce a series of wealth taxes, starting with a 2% tax on wealth above £10 million. That would raise billions more for our public services.”
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