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Should the UK introduce a new wealth tax?

Graham Watson

6th July 2020

61% of UK public support wealth tax for individuals with assets worth more than £750,000, (excluding pensions and value of main home) according to a survey from YouGov.

The question of how to fund government spending is going to be a major part of the aftermath of the pandemic, given that the national debt is now larger than UK GDP and that government borrowing for the year is likely to top £300bn.

As a result, it is clear that the government are going to have to consider funding this: one way, suggested here is for there to be a wealth tax. Not only would it provide a source of revenue, but it would, according to Gus O'Donnell, also demonstrate a commitment to reducing inequality, and provide a genuine 'levelling up'.

See also this article from the Financial Times: Wealth tax more likely than ever, former civil service head says

Of course, such a policy is likely to be unpopular among many of those with the most power and influence, so it will be interesting to see whether this is something that the government considers going forward.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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