Archbishop of Canterbury calls for tax rises to tackle ‘unfair’ economy
2 min read
The Archbishop of Canterbury has called for a radical overhaul of the UK’s “unfair” economic system, in a new report.
Justin Welby advocated tax hikes on big corporations and technology giants to fund poverty reduction and demanded a major wealth redistribution from rich individuals towards young people unable to buy homes.
The report by the Commission on Economic Justice - which was co-authored by the Archbishop – suggests scrapping inheritance tax and replacing it with a "lifetime gift tax" on any gifted income above £125,000.
It also calls for a higher "minimum tax rate" on multi-nationals, such as Starbucks and Google, alongside a fresh clampdown on tax avoidance.
The cash raised from the new measures would be used to fund wage increases for those on low incomes and zero hours contracts.
It would also pay for £10,000 handouts to help young people onto the housing ladder.
The Archbishop said: "For decades the UK economy has not worked as it should, with millions of people and many parts of the country receiving less than their fair share.
"The widening gulf between rich and poor, and fears about the future among young people and their parents, have damaged our nation's sense of itself.
"Our report shows that it doesn't have to be like this. By putting fairness at the heart of the economy, we can make it perform better, improving the lives of millions of people.
“Achieving prosperity and justice together is not only a moral imperative – it is an economic one."
TUC General Secretary Frances O’Grady, who also contributed to the report, added: "It's time for a once-in-a-generation rethink of our approach to the economy. Working people have had enough of stagnating living standards and massive inequality, and no-one's buying the idea that there's no alternative.
"A better deal for working people is possible, and will allow us to build a stronger, fairer economy."
A government spokesman said: "Since 2010, we've supported more people into work, introduced the National Living Wage worth £7.83 per hour, doubled free childcare and helped workers keep more of the money they earn at the end of every month by cutting taxes for 31 million people by an average of £1,000."
PoliticsHome Newsletters
PoliticsHome provides the most comprehensive coverage of UK politics anywhere on the web, offering high quality original reporting and analysis: Subscribe
