New Wealth Taxes — [Sir Edward Leigh in the Chair]

Ms. Winter congratulated the Member for Leeds East on securing the debate, emphasizing the need for a wealth tax during the cost of living crisis. She shared results from her constituency's survey showing 90% of respondents felt worse off than before, with significant numbers cutting back on essentials like food and heating. She cited statistics indicating that the top 10% hold nearly half of the country's wealth, urging for a more equitable taxation system.

She agreed with the hon. Member's points, arguing that political will is lacking in addressing wealth inequality and suggesting an exit tax on individuals leaving the country could prevent this.

Asked whether wealthy individuals who support wealth taxes could make voluntary contributions to the Exchequer. Mr. Chope argued against higher taxes, citing California's dependency on wealthy individuals for public services and the potential negative impact during a recession. He mentioned unintended consequences of stamp duty and council tax, highlighting that these can suppress housing markets and put undue financial pressure on wealthier constituents in Dorset. Mr. Chope described council tax as an embryonic wealth tax but emphasised its disproportionate burden on certain individuals compared to others across the UK.

Claire Hanna argued that wealth inequality is a significant issue due to failures in the tax system and evasion. She noted that wealth has been accumulating among the wealthy while income disparity increases, worsening during the pandemic. Hanna called for an individual wealth tax to address income disparity and raise necessary resources for transformative change.

Mr. Lavery expressed concern about the economic model that he believes is rigged, highlighting inequalities such as bankers' bonuses rising six times faster than average worker wages while people struggle to afford basic necessities. He cited a report indicating 2.6 million children skipping meals due to poverty and an increase in billionaires despite people's inability to pay for electricity. Does the Minister agree with the hon. Member for Christchurch (Sir Christopher Chope), who suggested that very wealthy people and companies should only pay extra, if indeed they choose to do so, in the form of a donation?

He emphasised the issue of income disparity, highlighting instances where individuals receive large dividends while others earn minimal wages, describing this as an 'obscenity'. The healthcare assistant in Jim Shannon's constituency is struggling to afford basic necessities due to high fuel, parking, rent, and utility costs. The MP highlighted the disparity between those who earn large bonuses and those who struggle financially, suggesting that taxing such individuals could provide much-needed funds for public services. In my contribution, I referred to eight companies that have purposely avoided tax, without breaking the law, by moving their money overseas. Amazon, Google, Apple and Facebook are four of those eight. Have the Government any intention to put pressure on those companies to ensure that they pay tax? All the people of the United Kingdom could then get the benefit of that through education, health and betterment.

Mr. McDonnell highlighted the significant increase in poverty, with 14.5 million people living in poverty and over 700,000 more children in poverty compared to a decade ago. He also noted that two-thirds of poor families include working individuals, indicating wage issues. Additionally, he mentioned that there are 2.1 million pensioners in poverty despite the triple lock benefit. The use of food banks has surged and over 2 million people have skipped meals due to financial constraints. Rough sleeping figures stand at 64,890 households, with one million on housing waiting lists.

Mr. Trickett highlighted the increase in wealth inequality, noting that the growth in wealth is linked to an increase in poverty. He pointed out a long-term decline in wages as a proportion of GDP and argued for tax reform focusing on capital rather than income or consumption taxes. Mr. Trickett proposed a regular wealth tax, suggesting it could raise about £100 billion annually. He also criticised the Conservative party's ability to address this issue due to significant donations from wealthy individuals.

The hon. Gentleman questioned whether wealth taxes are effective, citing examples from other countries that have abandoned such measures due to administrative difficulties and inefficiency in raising expected revenue.

The hon. Friend thanked the lead MP for securing an important debate, criticising the increase in billionaire wealth during a cost of living crisis and suggesting redistribution towards workers.

Taxation is high on the political agenda due to tax rises in the UK during a cost of living crisis, which contrasts with global factors such as energy markets and Russia's invasion. The Government has made decisions that have worsened inflationary pressures, including allowing the closure of gas storage facilities and freezing personal allowances for five years. This undermines economic policy coherence and leads to hardship for many. Additionally, there are tax loopholes that deprive public finances of needed funding from those most able to pay.

The hon. Member suggested that increasing national insurance contributions was a deliberate attempt to tax the poor rather than the wealthy for NHS failures. Interjected to say council tax is not a wealth tax as it affects those who do not own property. Mr. Grant highlighted the stark contrast between wealth distribution in Norway and Scotland, citing Norway's sovereign wealth fund worth $1.2 trillion compared to Scotland's lack of such a fund despite similar North Sea oil resources. He also noted the increasing income gap, with the wealthiest 20% seeing their incomes rise by 4.7% while the poorest 20% saw theirs decrease by 1.6%. Mr. Grant criticized the government for focusing more on chasing benefit cheats than tax cheats and emphasized that rising inequalities are a result of deliberate political choices. Will the Minister give way? Thank you, Sir Edward, for intervening on my behalf. That is the second or third time that the Minister and her colleagues have quoted figures on how much better off certain people will be because of changes to the tax and benefits system. They have not yet been able to answer the question of how much of that additional income has already disappeared because of the increasing cost of the basic essentials of life.

Read an excerpt from a letter to Klaus Schwab, stating that the global economic system is failing due to inequality and power of a wealthy minority. Mentioned a report finding 56 billionaires in the UK with wealth totalling $204.9 billion, while wealth gap between richest five and bottom 40% of society has increased. Is the Minister aware that the report did discount an annual wealth tax, and looked at exploring the possibility of an annual wealth tax if it was done in tandem with overall reform of our taxation system? Does she agree that our taxation system is long overdue an overhaul?