Let’s be Fair – Tax the richest

Sarah Rees, Head of Oxfam Cymru

Polling by YouGov, on behalf of Oxfam, released this week, shows that over three-quarters of Britain’s population would rather increase taxes on the richest than see cuts to public spending.

There is also overwhelming support across Wales, Scotland and England for raising a 2% tax on those with assets over £10M. A tax that would raise around £24Bn and do away with the need for punitive cuts to social security.

Cuts that undermine the safety net for all of us not just the most vulnerable in society.

The UK Government is making a choice to cut support for people living with illness and disabilities, rather than look to those who can most afford to contribute. Making this choice defies the opinion of the vast majority of the UK population.

This is the choice being made in the UK today. Research by the Joseph Rowntree Foundation shows that over the coming years those with the least wealth will be the hardest hit by this UK government’s choices. Suffering twice as much as middle- and higher-income parts of the population in relative terms.

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What of Wales?

 A Wales specific poll, commissioned from YouGov by Oxfam Cymru, shows that 78% would rather the UK Government increase taxes on the very richest to improve public finances than see cuts to public spending; 79% support introducing a 2 per cent wealth tax on net assets worth more than £10 million; and 72% think that the very richest people in the UK should pay more in tax.

More people in Wales believe that the richest should pay more tax than in any other part of the UK.

The announced spending cuts will hit Welsh communities hard, where poverty rates are higher than much of the UK. With an aging population and greater health challenges, Wales faces a double burden—and a double blow.

Meanwhile, having the same party in power at both ends of the M4 is yet to show improvements to the lives of people living in Wales. Instead of pushing back against their Westminster counterpart's harmful policies, Welsh Government seems reluctant to challenge these deplorable political choices —even as 92% of Labour supporters back a wealth tax.

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Another Way?

 There are always other choices.

At Oxfam Cymru we believe there are different choices to be made, choices that can lead us to a better, fairer, future.

Today, inequality is rife; climate change and ecological destruction continues along a dangerous and untenable path; the undervaluing of our care economy pushes women deeper into time and income poverty; hunger and food insecurity are on the rise; and, globally, violent conflict is increasing.

The world is shifting dramatically and there is no better time than today for the mainstream to consider radical alternatives to drive a better, fairer future for all, to build an economy that works for everyone.

Cutting social security is unjust, short-sighted and harmful, it deepens inequality, harms the most vulnerable in society, and stores up challenges and problems for future generations.

New analysis by Oxfam, Patriotic Millionaires UK, and Tax Justice UK, finds that the wealth of all UK billionaires soared by £11 billion last year. A sum coincidentally equal to that which the UK Government has recently cut from its international aid and social security budgets combined.

Meanwhile, here in Wales, Welsh Government seem stuck in a cycle of reactive ‘firefighting’ measures, rather than shifting their focus to prevention and long-term solutions.

In part this is due to the majority of our budget being spent on public services, leaving a limited amount to invest in improving wellbeing, building resilience, and tackling poverty and inequality. A cyclical problem which our government in Wales must seize and solve in order to break free from our excessive reliance on public services and their ever-rising cost.

Why?

 It is difficult to understand why the UK government has chosen to push more people into poverty and hardship rather than tax the rich – there has been precious little explanation, with the idea that the wealthiest are already ‘doing their fair share’ ringing hollow as their wealth grows ever larger and ever faster in comparison to everyone else.

For context, on average every UK billionaire’s wealth increased by over £30m per day last year.

Our own First Minister, Eluned Morgan, needs a reminder of her calls to establish ‘a permanent Poverty and Inequality Commission to help set a long-term direction and suggest practical solutions for tackling poverty in Wales’.

This is what we need. At UK level and in Wales, long-term planning and solutions that address and reverse the inexorable growth in poverty experienced across our nation.

Oxfam Cymru is calling for a Wales-wide anti-poverty strategy and looks to all political parties to adopt this as a manifesto commitment as we approach the 2026 Senedd elections.

Time to step up

It’s time to tax the wealthiest so that we can fix our broken social security system and build an economy that works for everyone. Reducing poverty and inequality benefits everyone - fairness must guide our long-term future.

We need a well-being economy that cares for people and planet, creating a sustainable world in which everyone can thrive and survive.