Climate groups call for UK wealth tax to make super-rich fund sustainable economy

Growing number of campaigners urge government to ensure green investment is not done ‘on backs of the poor’

A growing number of climate groups are campaigning for the introduction of a wealth tax to ensure the transition to a sustainable economy is not done “on the backs of the poor”.

Last week campaigners from Green New Deal Rising staged a sit-in outside the Reform UK party’s London headquarters as part of a wave of protests targeting the offices, shops and private clubs of the super-rich across the UK.

The Pay Up campaign – backed by more than 20 civil society groups including Friends of the Earth, the National Education Union and Tax Justice UK – is calling on the government to bring in a series of wealth taxes as an alternative to spending cuts. It is one of a number of campaign initiatives focused on overhauling the tax regime being run by climate groups who say the revenue from the ultra-rich could fund investment, restore crumbling public services and help tackle the climate emergency.

“Fixing our broken tax system so that it finally taxes those who earn their income from assets and wealth at the same rates as the majority of the population, who earn their money from work, is the fair thing to do,” said Hannah Martin, a co-director of GND Rising. “We must tax the booming fortunes of the super-rich to rebalance our economy and fund investment in our communities, our schools, libraries as well as much-needed climate action.”

The campaign aims to highlight the growth in extreme wealth held by individuals and corporations in the UK. It calls on the government to introduce a 2% tax on assets over £10m, shut down tax loopholes and increase the tax paid on property and shares so that capital gains tax is equal to income tax. It is also urging the government to stop using public money to bail out big polluters such as failing water companies and fossil fuel firms.

Tax experts at the Tax Justice UK campaign group say a 2% tax on wealth above £10m would raise £22bn every year, and the other tax changes advocated for by GND Rising could raise an additional £50bn in a single year.

Martin said: “Climate campaigners are calling for wealth taxes because we have been told for years that ‘there’s no money’ to tackle climate change. But we can see along with the public there is enough money and it is being hoarded by the super-rich and polluting corporations. We need to unlock that wealth to tackle climate change and the cost of living crisis, and that means focusing on the government’s tax policies to win that change.”

There has been a growing clamour for a wealth tax in recent months from some economists, thinktanks and trade unions. In recent weeks prominent Labour figures including the former leader Neil Kinnock have added their voices.

Opponents, the super-rich and their advisers and supporters, have raised concerns that such a move would result in the ultra-wealthy leaving the country, a narrative that has been amplified by a blizzard of news stories over the past year.

However, experts say there is no evidence of a mass millionaire exodus from the UK, with the overall number of millionaires and billionaires having risen steadily over the past two decades. At the same time most people are faced with stagnating wages, rising living costs and decimated public services.

Zack Polanski, who is standing to be the new leader of the Green party, agreed there should be a wealth tax to ensure the ultra-wealthy – who are also the largest emitters – pay their fair share to tackle the climate crisis.

He argued that under the current plans to reach net zero emissions by 2050 the poorest in society were being asked to “step up to tackle the climate crisis”.

Cover photo:  The Pay Up campaign is backed by more than 20 civil society groups including Friends of the Earth, the National Education Union and Tax Justice UK. Photograph: Dan Kitwood/Getty Images