Thank you for contacting me about a wealth tax, public ownership of energy and other utilities, and more broadly, the cost-of-living crisis.
I appreciate that there have been several calls for a wealth tax in recent months and years. For example, in April 2021, the UN Secretary General called for governments to consider “a solidarity or wealth tax” on those who have profited during the pandemic, to reduce extreme inequalities. In October 2021, meanwhile, a group of 30 UK millionaires called on the Chancellor to tax them and the wealthy more in order to tackle inequality and address crises such as the pandemic and the climate emergency.
As you will know, the Government has not only repeatedly rejected calls for a wealth tax, but recently announced a tax cut for the UK’s highest earners. I welcome the Government’s sharp U-turn on this unconscionable policy. Nevertheless, it is clear that much needs to be done to make the tax system fairer, ensuring that the tax burden does not continue to fall just on the wages of working people, while the wealthiest, those making their money from large property portfolios and from buying and selling stocks and shares, remain untouched.
It is for this reason that I support a major review of tax breaks, too many of which simply provide loopholes for those who can afford the best advice. For example, I believe that we should abolish non-dom status and crack down on the use of hidden offshore trusts that allow individuals to avoid paying tax here in the UK.
On public ownership, I believe in a pragmatic approach that addresses the situation we face and ensures public money is spent wisely on the priorities of the country. With regards to energy companies, I believe our absolute priority in the current national emergency must be for every penny we spend to go on reducing bills for families and individuals. Nationalisation would require vast sums of money being spent on compensating shareholders – money that could otherwise be going directly to helping people who are struggling with the cost-of-living crisis. Therefore, I do not believe that nationalisation is the right solution to the immediate problems we are facing when it comes to energy bills.
I have seen first-hand the desperation and uncertainty that people are facing. That is why I have supported calls for an energy price freeze and for an expanded windfall tax on the eye-watering profits oil and gas companies are making. Unfortunately, while the Government has now announced measures to limit – but not freeze – energy price rises, I am concerned that it has chosen to leave the vast profits being made by energy producers on the table and instead let working people pick up the bill. I can therefore assure you that I will continue to support efforts to press it on this issue.
Thank you once again for contacting me.
Yours sincerely,
Barry Gardiner
Member of Parliament for Brent North