The UK wealth gap is increasing

Posted on

The FT reports this morning that:

Between 2012 and 2014, the wealthiest 20 per cent of households had 117 times more assets than the poorest 20 per cent of households.

Two years previously, the same comparison showed the gap at 97 times more wealth in the top fifth of households compared with the bottom fifth. The level of these ratios is high because the poorest fifth of households have hardly any wealth.

The increase in inequality is reported to relate to increasing house prices. I suspect that may be true, but these things are, I am sure, correct.

First, this inequality hinders the life prospects of millions.

Second, nothing is being done to address it: the Osborne economic plan (such as it is)is heavily dependent on house price growth continuing, which is why he has put in place policies to maintain it.

Third, the case for the reform of land taxation is overwhelming. I address the issue in The Joy of Tax.

And here.