Forum Topic

There will always be people at the top, bottom and middle. The portion of wealth each strata has and the disparity between the levels varies across countries and historically. Historically when the top takes too much and avoids tax and the bottom has nothing, the middle is heavily taxed, becomes disgruntled, revolution follows. Magna Carta, French revolution etc. The post war period in Britain was very unusual historically, it was a period of wealth sharing. It meant that a generation became far wealthier than their parents and grandparents, got to own property, gain qualifications for free, or at low cost,  become entitled to a generous pension, free healthcare. Not everyone, but a large portion of people, enough to reshape society and the economy. Create a consumer economy.It felt like progress and a trend that would continue, but it hasn't it has reversed.Labour has very close ties with business through lobbyists. Many MP work for lobbying firms, it's a lucrative next role. Peter Mandelson being a good or bad example. He set up Global Counsel a lobbying firm that works for the water industry. Must have been useful to Thames Water et al recently. The independent water review commissioned by Keir Starmer rules out nationalisation in its terms of reference. Lobbyists earning their money. Former Labour Minister Jim Murphy, set up and runs Arden strategies. This is what they say about Themselves; Expert Political Advisers — We craft winning narratives that resonate with decision-makers and the media. Shape your strategy & share your message with key influencers & journalists. Led by Jim Murphy.As an ex Labour Minister, Jim Murphy can and does arrange one on one meetings and events with Labour Ministers. He is, no doubt, rewarded handsomely for it. Arden has many corporate clientsLabour's polices are heavily shaped by the activities of lobbying firms.

Kathleen Healy ● 14d

Britain has the oldest and leakiest properties in Europe which need updating to deal with hotter colder wetter and drier weather which is why legislation came in to try to improve it.Have a look at the information on Shelter and other housing/homelessness websites.  Many homes that Councils were forced to sell under Right to Buy they have now bought back at increased prices.  Many were just rented out by their buyers and were then not maintained as well as they would have been had they stayed in Council hands.  All because of a belief that all home owners would automatically vote for the Conservatives.  You sold your property so that you did not have to spend on upgrading it.  That is of course your prerogative but there has to be some incentive for action to be taken to improve energy efficiency which is why it was legislated for in 2018.  You seem to have a pathological hatred of the Labour Party but it hasn't been just Labour who have made all the legislation regarding housing.  So many properties have been split with and without planning permission and all the necessary safeguards and facilities such as fire separation between properties, bin space and adequate facilities and space for the numbers who are housed in them.  Dividing properties can make it more difficult to maintain the whole building and more difficult for Councils to know how safe properties are. Having to pay VAT on upgrading buildings whilst not having to pay it on newbuild has also delayed the upgrading of buildings.  When you look at the problems people have and complain about the root of so many of them are to do with... housing - or lack of it..

Philippa Bond ● 17d

There have been and are lots of problems with landlords as there are a lot of necessary regulations concerning the condition, maintenance, energy efficiency and safety of their properties to rent - which many of them just ignore. As there is a shortage of truly affordable properties to rent many renters have been afraid to mention any faults in fear that they will be evicted and lose their home.  This can be devastating especially when it is difficult to find an alternative at an acceptable price where you have your family support network when you have to travel to work and have children at local schools whose continuity of education and friendships will be affected. Many landlords aren't good at carrying out repairs properly and/or in good time. The management and overseeing of correct and safe repair and decoration work is also often poor ie fire resistant doors that don't fit and close promptly and properly. There is still a problem with cladding and building faults that need attending to following Grenfell let alone all the buildings that need updating to deal with climate extremes. There are registers of landlords who have been prosecuted. Some of them can be hard to contact and find to raise problems.There are charities like Shelter and Citizens Advice who give advice on housing problems and renters' rights.It definitely isn't just privately rented accommodation where there are landlord problems but of course there can also be problematic tenants! 

Philippa Bond ● 18d

There isn't a problem with some people being very wealthy. It becomes a problem when wealth and power concentrates to the  extent that it creates great inequalities of wealth and power. Eventually it harms economic growth, particularly in an economy that relies on consumption. Rising poverty and a sense that the tax system is unfair leads to social tensions. This discussion prompted me to re read some of Capital, Thomas Pickety's 2013 book. It's interesting, the process he wrote about has accelerated and is more clearly evident. We have an elite who now own a bigger share of wealth than in 2013, a larger and increasingly poorer group at the bottom, 50% of people hold just 5% of the countries wealth, and a middle that feels over taxed and dissatisfied. Graduates are very heavily taxed. They pay an additional 9% tax on earnings over 28k. Under the latest plan, graduates will pay it back for up to 30 years. Many will be pay it for the whole term. Interest is added and compounds from the day the first loan is drawn. There is an older cohort, many of whom currently don't feel the squeeze felt by younger people. They vote and they support the status quo.What will happen over time though? as natural processes create an older generation with little wealth, or a middle aged generation who realise they will have little wealth to sustain them in old age. It's an interesting question because it is the educated middle that are the drivers of change, not the poorest.The shift away from post war wealth sharing has been cross party. I read an article once in praise of Tony Blair. It said his task was to broaden and deepen Margaret Thatcher's reforms and he did. Well done they said. It's true, he introduced student loans, kept the ban on Councils building housing. It wasn't lifted till 2018, after years of governments watching a housing crisis unfold. When you see where Blair is now, it's clear that his concern was never ordinary working folk.If you look at who funds the various parties, you can see that they are all answerable to the same lobby. Starmer's leadership bid was funded by wealthy individuals. He refused to say who his backers where until after he was elected.Liz Truss is opening an exclusive, invitation only, club in Mayfair. Joining fee half a million. A club for the pro growth, global elite. Odd, history shows that policies that distribute wealth create the greatest economic growth. See the the massive reduction of the post war debt under redistributive policies. I can't imagine that's what they have in mind though, maybe they mean pro growth of their own private wealth.We live, as they say, in interesting times.

Kathleen Healy ● 18d

Wealth can be income or assets. Assets generate income. Wealth accumulates. In Thomas Pickety's book Capital in the 21st century, he analysed economic data to show how when the rate of return on capital exceeds economic growth, wealth concentrates and creates social instability, as economic activity slumps. He showed this happened through history, the post war period being an exception.The wealthiest don't have jobs in the way that people whose income is derived solely from working do, they own assets. The people at the top of the asset pile, mostly inherited their wealth. We are currently in an unusual phase where more than half the worlds top wealth owners created it themselves, mostly the tech billionaires. That will be a one generation only thing. Once they pass it on, it will become part of the great pile of inherited wealth. And it will be vast, predictions are that we will have the first trillionaires in the next few years. Elon Musk tipped as the likely first.The wealthiest are able to employ tax avoidance, non dom status, etc. and to take out of the tax pot. SIPPS where you can put 60k each year into your pension pot and, not only pay no tax on it, but get a top of 7,200 from government. Or environmental land management subsidies for large land owners.Prior to the French revolution, the country slipped into an ongoing depression, poverty and hunger, everyone getting poorer and poorer. The causes were the cost of fighting the war in America, bad harvests and an aristocracy that spent lavishly and wouldn't pay tax itself.Initially Marie Antoinette and Austria were scapegoated. She was spending all the money and she was Austrian, the enemy. All kinds of stories were circulated about her; Madame Deficit, foreign beast, treacherous, immoral, licentious.The middle class petitioned about their grievances. They were paying too much tax and the aristocrats were not paying their share and spending lavishly. They demanded that the aristocrats pay more taxes and tried to abolish exemptions that enables the aristocrats to avoid paying tax. Their grievances were ignored and attempts to bring about change, failed. The rest as they say is history.

Kathleen Healy ● 19d

Long reply follows, apologies.Jayne, you did ask me that, but you also asked me (immediately before) "so what do you mean by wealth?"Now, I pointed out that I never used the word "wealth" so you were actually asking me to say what I meant about something I didn't in fact mention. Hopefully you'll acknowledge that. Hence my initial reply to you focussed on income rather than wealth.For what it's worth, I consider wealth to include things like assets (including property, collectables, jewellery), shares, savings and pension pots. There are other things that could be added to this list. There isn’t to my mind a direct correlation between wealth and income though the two tend to be connected.Having a significant income can contribute to one being able to accumulate wealth, but obviously lifestyle and how you choose to spend the money that ends up in your bank account can mean you aren't actually getting wealthier, even on a 100k salary.    Someone who is wealthy may have a lot of wealth, not very much wealth, or a moderate amount of wealth. I don't believe there are any strict boundaries as to when you transition from one category of wealth to another one.I’m not fussed about motivated, wealth creators earning a lot of money. Like you said, they pay a lot of tax. Personally I wouldn’t call the amount they are taxed disproportionate, as that word suggests a degree of unfairness. They pay a higher proportion of tax on what they get paid ( if we are talking about income tax) and that’s entirely ok as far as I’m concerned. I’m fortunate enough to be paying some of my tax at the higher 40% rate, and if I earned more and went into a higher rate, I wouldn’t feel hard done by.It sounds like you consider 45% tax to be huge, and I doubt anything I say will change your mind about that, and similarly I don’t consider 45% tax to be a huge amount, and I doubt anything you say will change my mind. Finally (!) In answer to your “Andrew, I asked how much do you think you consider someone to be wealthy?”I honestly can’t really answer that question! I earn what I consider to be a very good wage, but I don’t consider myself to be wealthy, but I do consider myself to be fortunate, and that I had a much easier time getting to where I am than people who are starting out now will have.I live somewhere that I have a mortgage on, but it’s somewhere that I wouldn’t be able to afford to buy if I wanted to do so now. If your main asset is the property you live in, it makes you wealthy on paper.I've got what I consider a reasonable state pension to look forward to, and I don't imagine that the date I will start receiving it is going to change by too much between now and when I start receiving it - something that people in their 20s, 30s and 40s aren't able to say.

Andrew Jones ● 19d

Opportunity is linked to equality. The more equal society that was created after the war, with policies aimed at redistributing wealth, created opportunities for the generation born during and shortly after the war. I am a beneficiary of that. The building of millions of council homes after the war meant that in 1986, property was still plentiful and relatively cheap in London and I was able to buy a flat, aged 23. The belief that wealth should be shared went beyond government. Barclays gave me a subsidised mortgage, which also helped. My father in law, who worked for Barclays earlier than me, got a 1% fixed mortgage. Great opportunities.Free University tuition and grants for living costs. Cheap college fees if you studied at college, as I did. Loads of evening classes advertised in Floodlight every September. These were opportunities that don't exist now.Warren Buffet, at one time the world's richest man, lobbies for the rich in America to pay a fairer share of tax. He says the fortunes the rich have made have been enabled by creating an environment; infrastructure, education etc. in which there are opportunities. That was paid for by previous generations of tax payers.  He is a friend of Bill Gates and gave his foundation a billion dollars in one year. He argues, and he says that Bill Gates agrees with him, that if Bill had been born in sub Saharan Africa, he could not have become a tech billionaire. He'd have been lucky to live beyond childhood.I don't think us boomers should don sack cloth and ashes, but I think we should acknowledge our good fortune and aspire for younger people to have similar opportunities, or at least to move in that direction and not see succesive generations poorer and poorer.As an added benefit, redistribution created a bouyant economy that enabled the country to repay a colossal post war national debt.

Kathleen Healy ● 20d

It's a relative not absolute thing. If the relative becomes extremely unequal, as it was in Victorian England or is in South Africa and the Countries that now have extreme wealth and extreme poverty, it produces many negative consequences for everyone, even the wealthy.The Spirit Level: Why More Equal Societies Almost Always Do Better is a book published in 2009. It analysed a number of social ills; physical ill health, mental ill health, crime etc. and found a strong corelation between them and inequality. Countries with lower levels of inequality had populations with lower levels physical and mental ill health, lower crime etc. The level of equality in a country tends not to be static, it is usually moving in one direction or the other. After the war the direction in the UK was, for many years, towards greater equality. This was a boon for the post war generation, many of whom became wealthier than their parents and grand parents.From the late 70's on, the direction has been consistently towards greater inequality and is still heading in that direction. The great, global banking fraud of 2008, followed by austerity, accelerated it, as did Covid. Unless there is change in direction, inequality will continue to grow, with a few people owing more and a large number having less.The level of inequality is a political choice. The greater levels of equality after the war were due to policies that redistributed wealth down, making the post war generation a generally wealthier one. The policies also produced high economic growth that quickly reduced post war national debt.The change in political direction from the late 70s has redistributed wealth upwards, over time creating greater inequality.

Kathleen Healy ● 20d

“The Tory analysis suggests that the number of working-age households receiving more than £30,000 a year in benefits has climbed by more than a third to 800,000 since the Department for Work and Pensions started using administrative data on incomes people actually receive instead of relying on asking them in surveys.Of those, some 667,278 households took more than the average salary of £32,200 a year in 2023-24 – a record high and up 30 per cent on the previous year. The number dropped to 625,618 in 2024-25, but was still double the 392,000 in 2019-20.The 600,000-plus families accounted for one in 30 of all households in Britain. Of those, 267,000 received more than £40,000 a year, 91,000 were paid more than £50,000 and 16,289 received more than £60,000 a year in 2024-25 – an 8.5 per cent increase on the previous year.The benefit cap, introduced in 2013 by George Osborne, the then Tory chancellor, was designed to limit the maximum amount of benefits that a working-age household can receive, to encourage people into work.But if the household includes one adult in receipt of disability benefit, even if there are other adults in the family who are fully able to work, they all avoid the benefit limit.The Tories are proposing to close this loophole, which allows uncapped benefits for a whole household if just one adult is eligible for the Personal Independence Payment (Pip).They would require all adults who were able to work to be employed for at least 16 hours a week and face a cap if they were not.”

Steve Taylor ● 20d

Austerity policies, introduced after the great global banking fraud, were justified by a study, Growth in a Time of Debt, by economists Carmen Reinhart and Kenneth Rogoff. It said that debt above 90% of GDP significantly slows economic growth. Osborne, the EU and other countries cited it in justifying austerity. It contradicted earlier Keynesian theory that government intervention was necessary when growth stalls to stabilise the economy and stimulate demand and growth.The study by Rhenihardt and Rogoff was not peer reviewed and the data it was based on not made available. Other Economists later obtained the data and found spreadsheet errors, which undermine the theory and which are now acknowledged by R and R. Since austerity, debt has grown from around 74% of GDP, low in historic terms, to 93%. It is now generally acknowledged that growth is the way to bring it down.How was such extreme policy adopted, based on a non peer reviewed paper with a spreadsheet error.There were alternate economic views at the time. They said the best way out of the debt, caused by bailing out the banks, which were at risk due to colossal fraud, was through growth, underpinned by gov't spending. These alternate voices were given less prominence.A recent study into BBC bias found that it was not politically biased, but is was criticised for economic bias. Reporting the Rhenhardt Roggoff view, used by Osborne to justify austerity, whilst not putting forward  alternative views, was one of the examples. The whole mainstream media did it. It made it seems as though austerity was the best and only option. No one reported that the paper was non peer reviewed and the data it was based on wasn't available. One effect of the banking fraud, austerity and QE; or printing money which was given to banks,  has been to increase asset values and  accelerate an already growing wealth gap. The wealth of the top 10% has increased by 280% since 2008.The poorest 50% of people in the UK now own 5% of the wealth. In real terms what this looks like is food banks, homelessness, crime, insecurity, fear and support for populist politics.

Kathleen Healy ● 21d

Jayne ThorburnDate/Time: 30/04/26 11:45:00"This has nothing to do with youth clubs and the element of society causing this trouble wouldn't go anyway. Then we have Zack, Green Party stating the police were heavy handed with the guy who stabbed 2 people because they used a taser seriously. The greens are big trouble if they think it was heavy handed. Lawless London is down to Sadiq super poor policing policy.  Shoplifting, too much money via welfare, high youth unemployment, these people are bored and think it’s funny to terrorise society. Poor parenting lock them all up in youth offenders places, make them work for nothing hard labour thats the answer. We have no deterrents at all."Talk about hysteria! Didn't you forget bring back the birch? Oh! and what about the stocks? - is there room for a set along Chiswick High Rd. or perhaps they could be on Turnham Green? Let's be honest a lot of today's crime - stealing mobiles for one - is because daft people will insist on wandering along nattering and waving the blasted things  about - just asking for some light fingered individual to whip said 'phone straight out of their hands? And those people who get cars broken into when they will insist - against all sensible advice - on leaving  belongings on display just asking for someone to steal them? That's not to say that everything is rosy but it is hardly the dystopian vision your post paints. And how this is all the fault of The Mayor or the Green Party is another daft assumption, no doubt you'll be saying that if this country is daft enough to listen to right-wing nutjobs and their tough-guy utterances then all will be sweeteness and light. Dream on.

Vanessa Smith ● 24d