March 2024 | Fair Point | abrdn Financial Fairness Trust Newsletter

31 March 2024

The wealth edition

This month we’re thinking about wealth. Who has it? How is it taxed? How do you make millions? OK, not the last one, but wealth in the UK has been in a spotlight quite a lot in recent months. Inflation falling, interest rates, well, not yet falling but we are promised it will come. Assets and the wealth gap are a key area of interest for the Trust.

Wealth at home and abroad

At the Budget earlier this month, in a move which perhaps explains why Labour are yet to make many policy pledges, the Conservatives announced the introduction of reform of the taxation of non-doms. Before the announcement, the IFS had produced a report which considered whether a reforming taxation of non-doms would increase tax revenues. The report is part of a series of analysis we are supporting the IFS to carry out in the run up to the general election. They will present rigorous, evidence-based and independent analysis of key policy issues in areas such as the public finances, living standards, working-age benefits, taxation and public services.

Read the non-doms report here

Wealth through wages

In partnership with the Resolution Foundation, we carry out an annual report on wealth inequality in the UK. The report finds that it is becoming increasingly difficult to accumulate wealth through work alone. For those in the public sector, even higher paid roles such as doctors, this may be particularly true. A new report from the IFS this month (part of the general election series mentioned above) found higher earners have suffered big pay cuts in the public sector. At the 75th percentile (i.e. earning more than three quarters of public sector workers) pay is now 8% lower than in 2007.

Read more

A wealth of opportunities

Bright Blue has published a collection of essays which offers a fresh and radical centre-right vision to help people on modest incomes build up and pass on wealth.

The book includes essays from leading decision makers and opinion formers from different professional, political and social backgrounds, offering analysis and ideas across four key areas: acquiring assets; leveraging assets; sharing wealth; and drawing down later in life.

You can download them for free here.

Podcast: How can political parties close the wealth gap? 

We spoke to Arun Advani from the University of Warwick and Ian Mulheirn from Resolution Foundation about what the political parties could pledge to close the wealth gap.
Listen here