Mel Stride
Main Page: Mel Stride (Conservative - Central Devon)Department Debates - View all Mel Stride's debates with the HM Treasury
New Wealth Taxes
Mel Stride Excerpts(2 years, 4 months ago)
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Richard Burgon
As always, my hon. Friend makes a crucial point, and she is absolutely right: that is a moral imperative.
In the past few weeks alone, we have learned that the number of billionaires in Britain has risen to 177, and their wealth is now at record levels. Britain’s billionaires have increased their wealth by a staggering £220 million per day over the past two years. On top of that, we have learned that bankers’ bonuses are up 28% over the past year and are rising at six times the rate of wages. We have also learned that the bosses of Britain’s top 100 companies have seen their annual pay increase to an average of £3.6 million. We have food banks for nurses in hospitals, but at the top of Britain’s finance sector, the champagne corks are well and truly popping.
That phenomenon is not confined to Britain; it is global. The total wealth of the world’s billionaires is now equivalent to 14% of global GDP—up threefold since 2000. The global wealth of billionaires has risen more in the past two years than in the previous 23 years combined. If we are to tackle inequality and hardship, we need to address our rigged economic model.
Mel Stride (Central Devon) (Con)
The hon. Gentleman is making interesting points. I accept that there has to be a limit to the amount of wealth that can be accumulated by a small number of individuals; I do not think anybody would argue that equity is not important to some degree. He mentions the global situation. Many countries have actually stepped back from wealth taxes, which they found did not work because they are bureaucratic and administratively difficult, and they ultimately did not raise the money expected. Austria, Denmark, Finland, Germany, Iceland, Ireland, Italy, the Netherlands, Luxembourg and Sweden have all tried wealth taxes and decided that they did not work. Why does he think that is the case?
Richard Burgon
I encourage the right hon. Gentleman to read the report I have here. It is by some top academics and makes a compelling case for a wealth tax in the UK. I will return to that point in greater detail later in my remarks.