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.
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.
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.
Below is a list of the essays, you can download them for free here.
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ACQUIRING ASSETS |
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WHY ASSETS ARE IMPORTANT |
Ryan Shorthouse |
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PASSING ON WIDELY The case for a citizen capital grant |
The Rt Hon Lord David Willetts |
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GETTING A FOOT IN THE DOOR Helping more people onto the property ladder |
Dr Gerard Lyons
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HOW FAR DOES HARD WORK TAKE YOU? Improving asset acquisition among hard-working millennials |
John Oxley
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FALLING BEHIND Racial disparities in savings and wealth |
Deven Ghelani |
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STANDING ALONE? How the self-employed can build assets |
Sam Robinson |
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LEVERAGING ASSETS |
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SAVING SAVINGS Improving opportunities to save for low-income households |
Sacha Romanovitch
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FRIENDS IN THE RIGHT PLACES? The role of social capital in building wealth |
Dr Rakib Ehsan
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BOOMING BUSINESS? Making it easier to start and grow businesses |
Emma Jones CBE
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ALL ABOARD? Widening participation in pension schemes |
John Godfrey |
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SHARING WEALTH |
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STRENGTHENING OUR ONE NATION The centre-right case for spreading wealth |
The Rt Hon Baroness Nicky Morgan |
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A CAPITAL IDEA? Rebalancing the taxation of work and wealth |
John Penrose MP |
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MONEY FOR NOTHING? Critically assessing inheritance tax reliefs |
Arun Advani and David Sturrock
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BUILDING A FAIRER UK Levelling up the UK with property tax reform |
John Stevenson MP
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A REASONABLE RETIREMENT Reforming the incentives to save for retirement |
Michael Johnson
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SHARED SUCCESS Employee ownership as a supercharged ‘all-party’ solution to bolster wealth |
Graeme Nuttall OBE
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DRAWING DOWN |
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DESERVING OR DYNASTIC How to make inheritances fairer |
Andrew O’Brien |
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FLEXIBILITY OR FOOLISHNESS Making the most of pension freedoms |
Sir Steve Webb
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A REDUCED RETIREMENT Housing equity in an era of falling house prices |
Tim Leunig
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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
