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Wealth Inequality in the UK - Should There Be a Wealth Tax?

Graham Watson

27th May 2025

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Guardian and the Equality Trust research reported here indicates that the UK's richest families are getting richer - with 50 families having more wealth than 50% of the population. That's 34 million people. Indeed, the top two families alone are wealthier than the entirety of the 1990 Rich List. Some see this as implying that there's a need for a wealth tax, with one lecturer at KCL, Dr. Benjamin Tippet suggesting that had it been in place since the mid-1990s, a 2% wealth tax would have raised around £325bn, equivalent to £11,000 per household but that, despite that, the wealth of the top 0.001% would still have increased.

This Guardian editorial raises the possibility of a wealth tax, arguing that it's necessary to reset the economy and promote social justice. They argue that the rich don't pay their fair share - although the top 10% of the population already pay 60% of all UK income tax receipts.

However, they also point out that, according to Tax Justice UK a 2% wealth tax on assets over £10m would generate £24bn per year.

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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.