Compass urges Burnham to consider wealth tax and public service reforms
A report offers 70 options to address inequality, but does not establish government backing or an implementation timetable.
A Compass report assembled by 15 leftwing thinkers has urged Andy Burnham to consider a package of policies aimed at reducing inequality, including a wealth tax, free personal social care and public ownership of energy networks.
The report, Ending Business as Usual, presents 70 proposals as “a menu of policy options, not a manifesto”. It was compiled ahead of Chancellor John Healey’s first budget this autumn and is framed as a contribution to the Prime Minister’s promise to end 40 years of neoliberalism.
Among the options is a tax on net assets above £10m. Caitlin Boswell of Tax Justice UK estimates it could raise about £24bn a year, although the figure is not independently confirmed in the source material. The report also proposes equalising capital gains tax with income tax and replacing council tax and stamp duty with a proportional property tax.
The Institute for Fiscal Studies has warned that equalising capital gains and income-tax rates could reduce overall revenue and investment, while encouraging wealthy individuals to move their money or leave the country.
Compass also proposes free personal social care in England, funded partly through a 1 per cent income-tax surcharge for people over 40 and contributions from housing wealth. The suggested model would cover personal needs such as washing, dressing and eating, while accommodation and ordinary living costs would remain the responsibility of individuals and families.
Other proposals include universal free childcare, government-owned companies running energy networks, regional energy boards, a £50,000 cap on political donations, an immediate cost-of-living package and abolition of the House of Lords. The report does not indicate that Burnham, Healey or the government has adopted or endorsed any of the measures.
