The new government’s primary mission is to deliver economic growth, rooted in an ambition for prosperity and opportunity to be accessible across the UK. This government is starting from a position where the tax system is actively constraining ambition to regionally rebalance the UK.
Working people’s incomes are taxed more heavily than incomes from wealth - and the tax advantage on incomes from wealth accrue overwhelmingly to London and the South East.
The fair taxation of wealth can help regionally rebalance our economy, correcting widening inequalities in wealth, and consequently in health, power, opportunity and living standards. Under the status quo, our tax system drives regional wealth inequality up.
This report points towards the role that tax reform could play in regionally rebalancing the country. The new government should consider all the tools available and prioritise fairness and prosperity to do so.
