Tax Wealth, Not Poverty – The Key to inclusive growth

By Tom Burgess, CEO Taxpayers Against Poverty, 7 October 2025

Britain is one of the richest nations on earth, yet millions of people live in poverty. Nurses, teachers and builders see more of their income taken in tax, while vast fortunes often go comparatively untouched. Our system over-taxes work, under-taxes wealth, and entrenches inequality.

If we are serious about tackling poverty, we must modernise our tax system. Taxing wealth more, and income less, is not just fair – it is essential.

Poverty is a policy choice

Over 14 million people in the UK are in poverty. Families struggle with rent, food and energy bills. Disabled households face nearly £1,000 a month in extra costs. None of this is inevitable. It is the outcome of political decisions, particularly how we raise and distribute revenue.

Council tax is regressive, hitting the poorest hardest. National Insurance weighs heavily on workers. Meanwhile, rising property and financial assets are undertaxed. The system rewards those who already have wealth, while those relying on wages are squeezed ever harder.

Wealth taxes cause no hardship

A modest levy on extreme wealth – for example, on fortunes above £10 million – would not change the lifestyles of the wealthy. But it could raise £20–25 billion a year.

That revenue could fund affordable homes, better schools and childcare, stronger health and social care, and investment in communities. These are not handouts; they are investments that create opportunity and long-term growth.

Fairness drives growth

Critics say wealth taxes will drive investment away. Evidence shows the opposite. Reinvesting wealth in housing, transport and local services creates jobs, stimulates demand and increases productivity. Economists call it the multiplier effect: public investment pays back more than it costs.

A fairer tax system would also rebuild trust. When people see that the burden is shared – that those with the broadest shoulders contribute more – it strengthens the social contract and creates the conditions for sustainable growth.

A clear public mandate

This is not a fringe proposal. Polling shows around three-quarters of the public, including a majority of Conservative voters, support wealth taxation. Even many millionaires themselves now argue they should pay more.

The choice before us

We can continue with a system that keeps millions in hardship while wealth grows unchecked. Or we can modernise our tax system so that work is rewarded, wealth contributes fairly, and poverty falls.

Taxing wealth is not about punishment – it is about responsibility. It is about reinvesting what has been created by us all into a society that works for us all.

If we want to reduce poverty and inequality in Britain, we must start by taxing wealth, not work.

Tom Burgess

Tom Burgess is CEO of Taxpayers Against Poverty and author of From Here to Prosperity, a practical policy agenda for a sustainable economy and greater social justice. Tom is the former CEO of an international communications firm which operated in 100 countries and has been involved in politics since he was a student union president.