Income Tax (Charge)

Clive Efford Excerpts

Monday 4th November 2024 Commons Chamber

[Clive Efford (Eltham and Chislehurst) (Lab)]

I welcome the Budget; it begins the change that people voted for at the general election. It is a move away from laissez-faire under the Tories to an active Government who will be on the side of ordinary people and act in the common good.

I also welcome, as the chair of the all-party parliamentary group on haemophilia and infected blood, the money for compensation in the contaminated blood scandal. The £11.8 billion is very welcome. It is remarkable that, after all the debates, statements and questions we had over so many years in this House, the previous Government never set aside a penny for the compensation scheme. I note from the Red Book that the £11.8 billion for contaminated blood is to be spent over five years. I just say to my hon. Friends on the Government Front Bench that that is a long time for people to wait for justice. I hope that does not slow down the interim payments and final settlements. Too many have died along the way. We cannot let anything get in the way of these people receiving justice.

I agree with the changes to non-dom status and inheritance tax, but they do not begin to deal with the imbalance in the growth of wealth between the top 1% who own so much wealth and the ordinary people. Over the last 14 years, the Conservatives have done nothing to address that imbalance. We must recognise that we do not tax wealth in the way that we tax work, which has created intolerable inequality. Since the 1980s, the wealth of the richest has risen from three times the national income to almost eight times. The top fifth of the country owns 63% of the wealth, while the bottom fifth have only 0.5%. The top 1% are 41 times richer than anyone else.

Despite that growth in wealth, wealth taxes have not increased as a share of overall taxation or as a share of GDP. This is the politics not of envy, but logic. If we do not invest an appropriate proportion of the wealth created by our nation in our public services and infrastructure, our universities and research, our police and courts, and much, much more, we diminish our country. Surely, that downward spiral will also be an incentive for those who, we are told, will go overseas if we tax them too much. We must ensure that we go where the money is and where it has been going over the past 40 years. It is time for us to address the imbalance between how we tax wealth and how we tax work. The Budget has set us on the right road, but we need to go further.