REPORT: Out of touch? When it comes to taxing extreme wealth, the House of Commons flags behind even the richest in the country
Over three quarters of the British public, including 68 percent of those with £1 million or more in investable assets, are in favour of a net wealth tax of 1-2% on those with more than £10 million. The policy received majority support from respondents across every political party.
Yet only 39 percent of Members of Parliament were supportive of the policy. This dramatic difference was significantly influenced by the fact that only 6 percent of Conservative MPs supported the policy, while MPs from other Parties were majority in favour.
While 77 percent of Labour MPs, Labour voters, and asset rich Labour voters support the tax, there are little to no statements of public support from the Shadow front bench.
Support from other parties never falls below 75 percent and opposition to it is very low, with no SNP MP respondents opposing the policy.
Between September 2022 and April 2023, Patriotic Millionaires UK worked with Survation to look at three UK groups and their attitude to the introduction of a net wealth tax: the general public; those with investable assets of more than £1 million (the top 6 percent of the UK population); and those who hold the power to change our tax system - Members of the House of Commons. Below are the consolidated results of the responses to the introduction of a net wealth tax of 1-2 percent for those with £10 million or more. This tax would apply to the top 0.04 percent of the UK population, just 20,000 people.
The British public
In September 2022 Survation conducted a poll for Patriotic Millionaires UK, of the full UK population (sample size 1,062). The survey was conducted via an online panel.
Question posed: A tax of 1.1% on those with wealth over £10 million would raise £10 billion every year. This would be enough to invest in an energy uplift for everyone on Universal and Pension Credit. However, the government argues that raising taxes would weaken the economy at a time when it needs to be made stronger. To what extent, if at all, would you support or oppose such a tax?
| General Public | Total | Conservative | Labour | Liberal Democrat | Other |
|---|---|---|---|---|---|
| Support | 69% | 63% | 77% | 79% | 81% |
| Oppose | 7% | 13% | 5% | 10% | 4% |
| Neither Support or Oppose | 19% | 20% | 15% | 8% | 12% |
The poll shows more than two thirds of respondents support the introduction of a net wealth tax of 1.1 percent for those with more than £10 million. Not only was there majority support in general, but majority support from voters across every political party.
These results support other research: YouGov conducted a similar poll in January 2023 showing that almost three quarters of the UK population support wealth taxes on millionaires with more than £5 million and £10 million. Similarly, a 2023 poll from Tax Justice UK found 77% popular support, reflecting overwhelming popular support for wealth taxes.
Those with wealth
In February 2023, on behalf of Patriotic Millionaires UK, Survation polled those with investable assets of £1 million or more on their attitudes towards the economy, extreme wealth, and tax policy (sample size 525). This represents the top 6 percent of the UK population. The survey was conducted via an online panel.
Question posed: A tax of 1-2% on those with wealth over £10 million would raise between £11 - £22 billion every year. This would be enough to double the national investment in infrastructure or to give all public sector workers a 10% pay rise and help to end the strikes. However, the government argues that raising taxes would weaken the economy, suggesting it could encourage investment abroad instead of in the UK. To what extent, if at all, would you support or oppose such a tax?
| Those with investable assets of over £1 million | Total | Conservative | Labour | Liberal Democrat | SNP | Other |
|---|---|---|---|---|---|---|
| Support | 68% | 51% | 77% | 81% | 66% | 79% |
| Oppose | 14% | 32% | 8% | 7% | 0% | 9% |
| Neither Support or Oppose | 16% | 16% | 13% | 12 | 0% | 12% |
Again, with this group, the poll shows that more than two thirds of respondents support the introduction of a net wealth tax. In fact, a subsection of those polled included individuals with more than £10 million in assets - and an astounding 66 percent of this group supported the introduction of a wealth tax on themselves. Not only was there majority support in general in this group, but majority support from wealthy voters across every political party, including Conservative voters, as with among the general population.
Political representatives
In April 2023, Patriotic Millionaires UK and Survation polled Members of the House of Commons. This survey was conducted via email campaign and polled 102 members of the House of Commons. Data were weighted to the profile of the House of Commons political party seat share.
Question posed: A tax of 1-2% on those with wealth over £10 million would raise between £11 - £22 billion every year. This would be enough to double the national investment in infrastructure or to give all public sector workers a 10% pay rise. However, some argue that raising taxes would weaken the economy, suggesting it could encourage investment abroad instead of here in the UK. To what extent, if at all, would you support or oppose such a tax?
| Members of the House of Commons | Total | Conservative | Labour | SNP | Other Parties |
|---|---|---|---|---|---|
| Support | 39% | 6% | 77% | 75% | 83% |
| Oppose | 45% | 79% | 3% | 0% | 17% |
| Neither Support or Oppose | 12% | 13% | 11% | 25 | 0% |
The vast majority of the public, including those in the top 6 percent, support the introduction of a net wealth tax but the average support from our political representatives sits at a much lower 39 percent. This percentage is dramatically affected by the very low support it gets from Conservative MPs, while no less than three quarters of MPs polled from other political parties are supportive.
77 percent of Labour MP respondents are supportive of the introduction of a net wealth tax. This is the same percentage as both the 2019 Labour voting general public and Labour voters with investable assets over £1 million. Given that over three quarters of respondents from each of these groups support this policy, why isn’t this a key policy for the Labour Party? Instead, with the exception of the abolition of the non-dom status, the Opposition has made little to no statement of support for wealth taxation and, in some instances, has distanced itself from policies that propose taxing wealth in a fairer way.
For the Liberal Democrats and the Scottish National Party, there is clear support for the introduction of a net wealth tax from respondents across the public, asset rich, and political groupings. And there seems to be a growing appetite to raise this issue up the political agenda from other opposition parties. Wealth taxes have been raised more than 70 times in parliament this year. At the 2022 conference the Green Party identified it as an important policy and the SNP First Minister identified the taxation of wealth as a priority for his government.
Most interestingly, despite 63 percent of 2019 Conservative voters and 51 percent of wealthy Conservative voters supporting the net wealth tax, only 6 percent of Conservative MPs surveyed support it. This is the greatest difference between the response from MPs and their voters in the surveys conducted. The level of support for a net wealth tax never falls below 51 percent from Conservative voters, and opposition to it never reaches a third. Meanwhile Conservative MPs show the lowest level of support for this policy with only 6 percent supporting and 79 percent opposing. So what factors are preventing Conservative politicians from supporting a tax on wealth when their voter base is already behind it?
Conclusion
Based on the findings from these polls it seems clear there is overwhelming support for the introduction of a net wealth tax, even from those on whom it would have most impact. The UK’s widening inequality, the cost of living crisis, and the lack of national investment has left many British people looking for new and better policies that will support a fairer, more just Britain, as well as generate new revenue for our much treasured and necessary public services. Supporting this policy is a step some Members of Parliament are willing to take, but not enough to change the direction of policy yet. It's hard to know if the UK’s leading political representatives are out of touch on this issue or if they find themselves in a political narrative bind, where policies like this feel like a leap they are not prepared to make. Given the results of these surveys, which show the overwhelming support this policy received from respondents across the political spectrum, it seems like a small step with little risk rather than a dramatic leap.
It’s time our elected representatives stopped picking at the scraps of an outdated economy which is in service of very few people, other than the super rich. It is time our elected representatives embraced what the public and many millionaires are already crying out for - an economy that works for investors and the general public alike; that gives Britain the infrastructure, investment, and services that it needs to be home to the innovation and entrepreneurialism required for a sustainable economy. It’s time to tax extreme wealth.
Notes
Full data set available on request, rgowland@patrioticmillionaires.org
