Wealth tax call to hit 75,000 to raise £130 billion over five years to fund UK renewal

Ministers are under pressure to adopt a wealth tax on Britain's 75,000 super rich to raise £130 billion over five years.

The money would be used to pay for a mass insulation programme for the nation's homes to cut energy use and bills, pay for free bus travel, so cutting driving costs, and train people in "green" jobs.

The proposals for a temporary National Renewal Tax have come from Kings College London economist, Ben Tippet, who was commissioned by Greenpeace, and they have the support of some so-called "patriotic millionaires".

The policy is built around a temporary annual 2.5 percent tax on all individual wealth above £10 million for the next five years of the Parliamentary term.

This tax would affect fewer than 75,000 people in the UK, or just 0.1 percent of the population, but could raise between £130bn and £183bn for the Treasury, depending on levels of avoidance and evasion.

The report is supported by millionaire impact investor and Patriotic Millionaires member, Julia Davies, who said: "Don't believe the government when they say the money isn't there. Because it is.

"As someone who would be covered by this tax, I can tell you that if you are fortunate enough to have wealth over £10 million, you can afford to make this contribution to a better future for Britain and still enjoy a very good lifestyle indeed.

"This report highlights that a small, temporary tax on our wealth could transform the lives of millions, while tackling the greatest threat humanity has ever faced - the climate crisis - all while investing in a strong forward-facing economy with quality stable jobs for the British people."

Greenpeace argues the conspicuous consumption of the rich, not least in terms of air travel, means they emit as much carbon as two-thirds of all humanity.

It said the richest 250 families in the UK also sit on a combined wealth of £748bn and the richest 1 percent of Britons hold more wealth than 70 percent of the population.

Greenpeace highlights that this disproportionately large carbon footprint of the super-rich means that it is only fair that the very wealthiest individuals should shoulder a greater share of the cost of the necessary transition to a low-carbon economy.

Greenpeace UK's climate campaigner, Georgia Whitaker, said: "There is a £130bn elephant in the room when it comes to how we raise the necessary finances to tackle growing inequalities and the climate crisis.

"The oversized carbon footprint of the super-rich is a clear rationale for ensuring that they play an oversized role in fixing the crisis that they have an oversized role in creating. It's time the UK government taxed their vast wealth.

"A new National Renewal Tax on the super-rich could raise eye-watering sums of money ensuring that every single home in the UK is warm and cheaper to heat, that bus and train travel is cheaper for all, and that millions of workers are supported into new secure green jobs in the industries of the future, right across the country.

"By tapping into a fraction of the wealth of a few thousand people we can pay for climate solutions benefitting millions."

She added: "The government must use the upcoming Budget to announce a National Renewal Tax on the super-rich to help transform Britain into the green and prosperous country we all want to see in the fairest way possible."

The report argues a nationwide insulation programme would upgrade all 19 million homes which an energy efficiency rating of D or lower, while some of the money would be used to bring down winter energy bills for the most vulnerable households "to prevent hundreds of avoidable deaths".

To make public transport cheaper, single bus fares outside of London could be capped at £1.65, with bus travel for people aged 25 and under made free - while also funding a 'climate ticket' for trains, providing users with unlimited access to rail travel across Britain for just £49.

Training schemes could be set up to enable the 3.2 million workers in high-carbon industries to retrain and switch to well-paid and secure new green jobs in all four corners of the country.

The National Renewal Tax could also help support farmers with the delivery of agro-ecological farming, which is essential for enhancing the UK's food security, cleaning up our rivers and nature restoration.

Report author and economist at King's College London, Ben Tippet, said: "The case for a new wealth tax has never been stronger. Wealth inequality has been rising for decades. People are struggling to get by. And much more needs to be done to tackle climate change.

"This report sets out a fair, balanced and feasible proposal for a new wealth tax on the super-rich to tackle these issues, backed up by sound economic theory and empirical evidence. The expected revenues generated are substantial, even with high levels of potential tax avoidance and evasion.

"Learning from the successes and failures of previous wealth taxes, one lesson is clear: a new wealth tax will only work if lobbying to create loopholes is stopped. This is a question of political will, not economics. While taking the leap to introduce a new wealth tax may seem hard, it will build a fairer, greener and more pleasant society for all."