UK millionaires ask Burnham to raise taxes on the wealthy
A group of 120 wealthy Britons, including Gary Lineker, says higher taxes on large fortunes could fund services and cut inequality.
By Daniel Okafor · Business Editor
3 min read
A group of 120 wealthy Britons is pressing Prime Minister Andy Burnham for a UK millionaires wealth tax, arguing that people with large fortunes should contribute more to help repair public services and reduce inequality. The appeal gives Burnham early political cover as his new government weighs how to address the cost of living and public finances.
The group, which calls itself Patriotic Millionaires, released an open letter on Thursday under the banner “Proud to Pay.” Signatories include former footballer and broadcaster Gary Lineker and actor Julia Davies, according to the group.
In the letter, the millionaires told Burnham they were ready to be taxed more, saying they were “proud to pay” and intended to remain in the UK. They argued that wealth and influence had been held by too few people for too long, with consequences for the country, democracy, the environment and wider society.
What wealth tax are UK millionaires asking for?
Patriotic Millionaires said a 2 percent tax on wealth above 10 million pounds, or about $13.3 million, could bring in 24 billion pounds, or about $32 billion, a year for the UK. The group also said changes to capital gains tax could raise another 12 billion pounds, or about $16 billion.
The group said revenue from higher taxes on wealth could be used to narrow inequality, improve public infrastructure and support small businesses. Its argument is that a higher contribution from people at the top would help fund investment in the public and economic foundations of the country.
Lineker said in a statement that the wealthiest people in Britain could afford to pay more while many ordinary people were under financial pressure. He described paying a fair share as a British value and said the government should raise taxes on very large fortunes to make the country fairer and more hopeful.
Burnham has signalled that he may ask some taxpayers to contribute more. In a podcast interview on Wednesday, he said he wanted a stronger sense of fairness and that people should feel decisions were being made in the right way; he has also suggested that a wealth tax could be part of the discussion.
Chief Secretary to the Treasury Emma Reynolds was asked about the millionaires’ letter on Thursday and said she welcomed people with means saying they wanted to pay more. Speaking to Sky News, she said the government was on its fourth day and that any major tax changes would be announced at a budget.
Reynolds also noted that people can already make extra payments through a link on gov.uk, while adding that ministers would review tax policy as a whole rather than respond through one-off announcements.
A separate report by Gabriel Zucman, an economics professor at the Paris School of Economics, and Ben Tippet, a lecturer in economics and wealth inequality at King’s College London, recommended a 2 percent minimum annual tax on Britain’s super-rich. The report defined that group as people with more than 100 million pounds, or about $133.3 million, in assets.
Zucman and Tippet estimated that such a minimum tax could raise about 10 billion pounds, or about $13.3 billion, a year. Their report said the measure would generate meaningful revenue and help slow rising inequality.
This story draws on original reporting from Al Jazeera.