Finance Bill

Debate between Josh Simons and Adrian Ramsay

2nd reading
Wednesday 27th November 2024 Commons Chamber

[Adrian Ramsay]

I thank the hon. Member for that question—I always enjoy her contributions. Later in my speech I will talk about a specific model that I would propose, one that I put forward in the general election and that has the support of a number of researchers and academics. There are lots of models out there, including those that look at examples from other countries.

I am glad that the Government are taking steps to close the unfairness gap in the tax system, whereby income from working is taxed at a higher level than income from wealth or assets. Reforming capital gains tax has been a major policy priority for the Greens for some time; it is long overdue, and I commend the Chancellor for grasping that particular nettle. However, the Finance Bill could and should go even further, focusing on the very wealthiest in society. Over the past 10 years, the UK has become an increasingly unequal country. Between 2020 and 2022 alone, billionaire wealth in the UK increased by almost £150 billion. The five richest families in the UK are wealthier than the bottom 20% of the entire population. That last stat can be replaced with a more recent one: according to the Equality Trust, the UK’s five richest families now own more wealth than the bottom 13 million do. Both are startling facts.

To answer the question posed by the hon. Member for East Thanet (Ms Billington), a wealth tax of 1% annually on assets above £10 million, and of 2% on assets above £1 billion, would demonstrate that this Government are serious about fairness. Figures that are backed up by researchers and academics suggest that such a wealth tax could raise tens of billions during this Parliament—much bigger than a number of the figures quoted by other Members today. It would show that the Government are serious about fairness, about transforming the economy and about investing for a better future.

[Josh Simons]

If the hon. Member is so concerned about inequality and poverty in this country, why does he refuse to support the building of pylons, thereby adding about £4 billion to the cost of increasing electricity production in this country? Those costs will, above all, go on to the bills of working people. Is that not a measure to reduce inequality and poverty in this country that the hon. Member would support?

[Adrian Ramsay]

If the hon. Gentleman is aware of my campaigning background, he will know that I have been one of the strongest advocates for accelerating to move to renewable energy for decades, with all the benefits that brings for reducing bills. If he heard the Westminster Hall debate yesterday, he will know that we need to combine speed on renewables with bringing communities with us and assessing all the options available, and we had cross-party support in arguing for that.