Campaigners have said a wealth tax on the super-rich could help fund an extra 130,000 care workers and five million emergency payments to vulnerable households. As Chancellor John Healey gears up to deliver his maiden Budget, a new analysis highlights how the cash could be spent on struggling public services that buckled under the weight of austerity.
Analysis highlights potential spending
The research by the IPPR think-tank, commissioned by 38 Degrees campaign group, also shows a levy on the super-rich over three years could help fund tens of thousands of desperately needed council homes. The money could also be used to help 900,000 into work with intensive employment support while expanding free bus travel for all young people.
Campaigners call for 2% levy
Campaigners, including the Patriotic Millionaires group, have repeatedly said a 2% levy on the assets of the uber rich over £10million could raise £24billion per year. Others have also urged the Chancellor to equalise capital gains with income tax rates, but there were reports earlier this week that Mr Healey had ruled out the option when drawing up the Budget.
Veronica Hawking, Campaigns Director at 38 Degrees, said: "The amount of extra things this money could do for normal people up and down the country is staggering. Being able to employ more than a hundred thousand more care workers and get hundreds of thousands of people into work would make such a huge difference to the everyday lives of ordinary folk. All this would be funded by a small extra tax on the wealthiest in society, those who have tens of millions of pounds and more. Andy Burnham and John Healey know the majority of people are struggling - here's something that could help so many."
Chancellor eyes bank tax instead
While Mr Healey is unlikely to usher in a wealth tax on the assets of the super-rich, he is said to be eyeing a tax hike on banks' bumper profits when he delivers the Budget on October 28. He has faced pressure from the Trades Union Congress and think-tanks to slap taxes on Britain's "big four" banks, with the public also backing the measure. Last month, the TUC published new polling showing 68% of voters support cutting energy bills with a tax on banks' profits.
Mr Healey previously refused to rule out tax rises, saying he would set out his plans in the Budget. However, the Chancellor has also said he is in "lockstep" with the PM Andy Burnham, who said before becoming PM the Government may have to ask for a little more tax at some point. Speaking in July, Mr Burnham said: "I'm not going rule things out right now. I do believe we need a greater sense of fairness."
A HMT spokesperson said: "As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, and we do not routinely comment on rumour, speculation or proposals."
