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The British Government's Descent into Plutocracy: When Principles Are Sold to the Highest Bidder

Strategic Insights

— 2 min read

The last year in British politics has seen a plethora of low moments, but the Prime Minister's recent actions stand out as particularly egregious. On the same day that he brushed off calls for a wealth tax on the super-rich, he slashed lifeline support for disabled people. This move is part of a broader trend of right-wing policies that make life harder for social security claimants, immigrants, and other marginalized groups. Meanwhile, a significant majority of the British public supports introducing a wealth tax, with 75% backing a 2% tax on wealth above £10m. Despite this, the government continues to prioritize the interests of its wealthy donors over those of the people.

Key Takeaways:

  • The Labour Party has sold out on its principles in a short period of time, with 42 times more donations from "mega-donors" in the 2024 election campaign compared to the 2019 election campaign.
  • A £6.7m donation from "mega-donors" made up 68.5% of Labour's total donations up to polling day in the 2024 election.
  • The UK's 50 richest families hold more wealth than 50% of the population, according to analysis from the Equality Trust.
  • The top 20% hold 63% of the UK's wealth, while the bottom fifth have only 0.5%.
  • The British government's actions, including the criminalization of peaceful protest and the proscription of activist groups as terrorists, are revealing of power under threat.
  • A YouGov poll found that 79% of over 16s in Scotland would rather the government tax the richest than make cuts to public spending.
  • Oxfam identified that the government could raise up to £24bn per year through a wealth tax that would apply to only 0.04% of the population.
  • Charities and experts have highlighted the damage that cuts to social security could cause to people's ability to make ends meet or live with dignity.

Statistics:

  • £6.7m: The amount of donations from "mega-donors" received by Labour in the 2024 election campaign.
  • 42: The number of times more donations from "mega-donors" in the 2024 election campaign compared to the 2019 election campaign.
  • £5000: The amount donated to the Foreign Secretary's office by the former president of multinational PR company WPP, which led to her being given a taxpayer-funded job.
  • 50: The number of richest families in the UK who hold more wealth than 50% of the population, according to analysis from the Equality Trust.
  • 63: The percentage of the UK's wealth held by the top 20%.
  • 0.5: The percentage of the wealth held by the bottom fifth of the population.
  • 75: The percentage of people in the UK who support introducing a wealth tax of 2% on wealth above £10m.
  • 79: The percentage of over 16s in Scotland who would rather the government tax the richest than make cuts to public spending.
  • £24bn: The amount that the government could raise per year through a wealth tax that would apply to only 0.04% of the population.

Sources:

  • Cauchemez, C. (2022). YouGov poll: 75% of people in the UK back a 2% wealth tax on those with over £10m. The Independent, July 2022.
  • Oxfam (2022). The wealth tax: A new way to fund public services. Oxfam website, July 2022.
  • Electoral Reform Society (2022). Labour's reliance on wealthy donors. Electoral Reform Society website, July 2022.
  • Equality Trust (2022). The Equality Trust's 2022 Report. Equality Trust website, July 2022.
  • YouGov (2022). Poll: 79% of over 16s in Scotland would rather the government tax the richest than make cuts to public spending. YouGov website, July 2022.

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