Charity warns of big UK wealth divide
Oxfam says the richest 1% of people are now wealthier than 70% of the population combined
The richest 1% of people in the UK are now wealthier than 70% of the population combined.
A report by Oxfam highlights how the 685,500 richest people in Britain are worth a total of £2.8 trillion, compared with 48 million people in the UK whose combined wealth totals £2.4 trillion.
The report, called 'Survival of the Richest', builds a picture of widening worldwide inequality, after extreme poverty and extreme wealth increased simultaneously over the past two years for the first time in quarter of a century.
Throughout 2021 and 2022, the richest 1% accrued nearly twice as much "new wealth" - revenue created in the global economy - as the rest of the world combined, Oxfam has said.
According to the report, this elite group pocketed £21 trillion in new wealth over the last two years, which equates to almost two-thirds of all new revenue.
This comes after both the number and wealth of billionaires doubled over the last decade.
At the same time, at least 1.7 billion workers now live in countries where inflation is outpacing wages, and more than 820 million people - roughly one in 10 people on Earth - do not have enough food.
Oxfam is calling for a wealth tax of up to 5% on the super-rich to raise £1.4 trillion each year, which the charity argues is enough to lift two billion people out of poverty.
'An affront to basic human values'
Oxfam GB chief executive, Danny Sriskandarajah, criticised governments for failing to tackle the issue of financial inequality, describing the current economic situation as "an affront to basic human values".
He said: "Multiple crises have pushed millions to the brink while our leaders fail to grasp the nettle - governments must stop acting for the vested interests of the few.
"How can we accept a system where the poorest people in many countries pay much higher tax rates than the super-rich?
"A flour seller Oxfam works with in Uganda pays 40% tax each month, while some billionaires' true tax rates have been as low as 3%.
"Governments must introduce higher taxes on the super-rich now."
Along with Patriotic Millionaires and Tax Justice UK, Oxfam is pushing for one-off "solidarity wealth taxes", and a permanent increase on tax for the richest 1% to at least 60% of their income from labour and capital, with higher rates for billionaires.
Their campaign is supported by Ian Gregg, former managing director of Greggs and the son of its founder, who believes he should be paying more tax.
Mr Gregg said: "I can never be happy with an economy that fosters such division in society for our children and grandchildren.
"Now, more than ever, the wealthiest must contribute more.
"For me, paying more tax would be a small price to pay to start the process of making society fairer, and reducing inequalities in both wealth and opportunity."
Corporations doubling profits
Oxfam also found that 95 food and energy corporations more than doubled their profits in 2022, making £251 billion in windfall profits, and paying out 84% of this sum to rich shareholders.
The charity said that excess corporation profits have driven at least half of inflation in Australia, the US and the UK.
Some progressive governments have taken steps to increase taxation, including Costa Rica which increased its top rate of income tax from 15% to 25%, while Bolivia and Argentina have also introduced wealth taxes.
The cost of living crisis is affecting many:
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.