The wealth of the 200 richest families has surged from £42 billion to £711 billion since 1989, while public wealth has plummeted from £337 billion to minus £1 trillion.
Wealth of the 200 richest families has grown from £42 billion to £711 billion since the Rich List started in 1989, while public wealth of the country has fallen from £337 billion to minus £1 trillion.
While the Chancellor aims to cut taxes, 3 in 5 British millionaires think economic growth cannot happen without raising further tax revenue for national investment. A 2 percent tax on the 350 Rich Listers could raise nearly £16 billion - enough to recruit 10,000 new teachers and cover the cost of repairing Britain’s crumbling schools.
As the Sunday Times Rich List lands in 2024, new findings expose the stark difference between the wealth of richest families and the shrinking wealth of the country. Research by Ben Tippet and Rafael Wehr at Greenwich University demonstrates a growing divide between the experience of the wealthiest families and that of the British people and the country. While the wealth of the 200 richest families has grown from £42 billion to £711 billion in the last 3 decades since the Rich List began, the public wealth of the country has fallen from £337 billion to -£1.01 trillion.
Ben Tippet, Lecturer in Economics at the University of Greenwich, and researcher specialising in the Sunday Times Rich List said: “When the rich list was first published in 1989, The Queen sat at the top of the list. Today, The King has been pushed down to 258th place, as business owners, aristocrats, celebrities, and others have accumulated vast and unimaginable fortunes. During this time, the wealthiest 200 people have seen their wealth grow on average by 5.2% per year in real terms, compared to just 1.6% for GDP. As the economy continues to stagnate and the UK Government accumulates more debts than assets, we need to remember that the UK does have a growth model - it’s just for the super rich.”
Concern about the country and the cost of the extreme wealth divide is high among millionaires and the UK public alike. In a poll of UK millionaires conducted last week for Patriotic Millionaires UK by Survation, 65 percent of UK millionaires polled supported higher taxes on wealth to invest in national infrastructure and public services. But they felt there are clear barriers to this with 74 percent of UK millionaires responding that extreme wealth buys political influence.
Julia Davies, UK angel investor and member of Patriotic Millionaires UK said: “When over half of British millionaires think that extreme wealth is a threat to democracy and recognise that Britain would be better off with the super rich taxed a bit more, in this crucial election year what’s stopping our political parties from doing just that to support a stronger, better Britain? We can’t afford for our country to keep on getting poorer while a handful of people hold onto extreme levels of wealth. All upcoming manifestos should make taxing the super rich a key policy to provide the investment our country desperately needs.”
The poll also showed that, when presented with a range of tax policies that could be introduced to invest in Britain, the top three were closing tax loopholes, the introduction of a 1-2 percent annual wealth tax, and equalising capital gains with income tax. 63 percent of those polled supported the introduction of a 1-2 percent annual wealth tax on those with more than £10 million. And of those polled with over £10 million, 2 in 3 supported the introduction of this tax, which would directly affect them. A similar poll of the UK public by Tax Justice UK found that 72 percent supported this policy.
The wealth of the richest 350 families on the Sunday Times Rich List now totals £795.3 billion. A 2 percent tax on the wealth above £10 million of these families alone could raise £15.9 billion – more than what’s needed to cover the cost of recruiting 10,000 new teachers and repairing Britain’s crumbling schools.
Davies added: “The difference a small tax on the super rich could make to addressing the many challenges facing our country and the British people is phenomenal. If you are fortunate enough to be on the Rich List join us at Patriotic Millionaires UK and help us advocate for a fairer, healthier, more sustainable Britain.”
Poll highlights
74 percent of UK millionaires think the concentration of extreme wealth buys political influence, and 54percent think it's a threat to democracy - in an election year
65 percent of UK millionaires think that very wealthy individuals should be taxed more heavily to help fund public services and tackle the cost of living crisis
3/5 respondents think that economic growth cannot happen in the UK without raising additional tax revenue. When then presented with a range of tax policies that could be introduced to invest in Britain the top three were closing tax loopholes, the introduction of a 1-2percent wealth tax on those with more than £10 million, and equalising capital gains with income tax.
60 percent of respondents think the British economy would be stronger if we raised taxes on those extreme wealth to invest in public services and national infrastructure, and 75 percent think that these things are vital for the investors and entrepreneurs to thrive
63percent support the introduction of a 1-2percent tax on those with £10 million or more, and 66percent - or 2 in 3 of those polled - with over £10 million supported the introduction of this tax which would directly affect them.
Top three priorities for raising revenue to invest in Britain are policies that deliver further economic growth, closing tax loopholes, and the introduction of a wealth tax above £10 million.
See the Full Poll HERE