Mixed Messages on Inequality: budget day response - One Society Media Release

Submitted by Kathryn Busby on 24 March 2010

One Society Media Release – 24 March 2010

One Society is a new campaign, set up in association with The Equality Trust, to highlight the negative effects of income inequality, showcase research and policy solutions, and bring together people and organisations in support of a more equal society.

Mixed Messages on Inequality

One Society welcomes the Chancellor's acceptance of our case that top earners should bear their fair share of the costs of the recession and the recovery.   But we are disappointed by an absence of measures to change the damaging culture of high and runaway pay, or tackle wealth inequality. Both will be further entrenched, and the impact of attempts to raise the bottom limited, unless existing one-off moves (like that on stamp duty) are made permanent and further such policies implemented.

Financial journalist Greg Ford has analysed today's Budget for One Society to see what impact it might have on income inequality; in particular at the top end.

http://tinyurl.com/budget2010response

The overall picture is of some positive measures at both ends of the income scale, without the Chancellor going beyond limited rhetoric to actually signal the type of changes needed to reverse three decades of high and growing income inequality.

Greg Ford's headline points:

Global bank levy could have some benefit; even if implemented unilaterally. Not re-imposing tax on bonuses is a missed opportunity to start tackling root causes of high pay; as was unwillingness to investigate remuneration committees and other financial sector reforms. A full competition review of investment banking is needed, as currently ordinary savers are subsiding high risk activities without getting benefits Chancellor missed open goal and bigger prize of bringing non-doms into tax system, rather than focusing on offshore tax evaders. Universal bank accounts are a good idea but need to be well-regulated so that vulnerable customers do not face higher exposure to predatory lending (or other inappropriate marketing of financial products) as a result.

One Society commissioned this analysis following on from our - as yet unanswered - calls to 'judge the gap': that for this Budget and all future ones the Treasury should release an assessment of how the measures announced might impact on income inequality. http://tinyurl.com/judgingthegap

Malcolm Clark, campaign director of One Society, can be contacted on (t) 020 922 7921 (m) 07733322148, by email

malcolm@onesociety.org.uk or via Twitter @One_Society www.onesociety.org.uk

1. Greg Ford's full analysis of the Budget can be read on our website at http://tinyurl.com/budget2010response  He can be contacted via One Society or 07703 219222

2. The Chancellor said in his Budget Statement: "those who have benefited the most from the strong growth in incomes in past years should now pay their fair share of tax." ...."Looking across all the tax rises since the beginning of this global crisis, 60 per cent of them will be paid for by the top 5 per cent of earners." http://www.hm-treasury.gov.uk/budget2010_speech.htm

3. One Society is a new campaign, set up in association with The Equality Trust, to highlight the negative effects of income inequality, showcase research and policy solutions, and bring together people and organisations in support of a more equal society. www.onesociety.org.uk

4. One Society believes that a larger divide, in wealth and power, between those at the very top and the rest of society is damaging to national well being. More equal societies work better for everyone; not just those at the bottom but right the way up: we all benefit.

5. Demos has published three One Society pamphlets making a case for why addressing inequality is important for the three main political parties and setting out a series of policy recommendations. A one page summary is available at http://www.onesociety.org.uk/info/publications.htm 　Copies of the reports 'Everyday Equality', 'Wealth of Opportunity' and 'Society of Equals' are available from www.demos.co.uk/publications

6. View the Parliamentary Candidates who have signed up to the 'Equality Pledge' http://www.equalitytrust.org.uk/node/292

7. Compelling evidence shows that large income inequalities within societies damage the social fabric and quality of life for everyone. The evidence is published in Richard Wilkinson & Kate Pickett's book The Spirit Level: why equality is better for everyone.