10/09/20

UK: 'Raise taxes on companies and the rich', voters tell Rishi Sunak ahead of Budget.

As published on mirror.co.uk, Thursday 10 September, 2020.

Voters want Chancellor Rishi Sunak to hike taxes on companies and the rich, a study reveals tonight.

They believe lifting rates will help pump cash into vital public services as the country recovers from the economic battering unleashed by the coronavirus pandemic.

The Treasury is examining possible tax rises ahead of an expected Budget this autumn.

But Tory backbenchers have warned lifting rates could harm the bounce back from the Covid-19 recession.

However, according to polling and focus groups carried out between last December's general election and the middle of lockdown, there was widespread support for taxes on wealth.

Some 74% of those quizzed wanted to see wealth taxed more – including 64% of Conservative voters and 88% of Labour supporters.

In what could be seen as giving the Chancellor political cover for hikes, the proportion of Conservative voters who claimed they were personally prepared to pay more tax to fund services went up from 41% to 46% between March and June.

There was also strong Tory voter support for potential increases to capital gains, pension tax relief and corporation tax.

Conservative backing for higher corporation tax jumped from 61% in March to 74% in June – despite the party traditionally being seen as more pro low-tax.

In June, 61% of those asked, and 67% of Conservatives, said people who pocket cash from investments like stocks and shares should pay the same tax rate as those who earn money from work – bringing capital gains in line with income tax.

Some 66%, including 74% of Conservatives, supported increasing corporation tax, which is currently 19%.

And 56%, rising to 58% of Conservatives, supported equalising the tax relief bonus on money ploughed into their pensions, regardless of whether they were a higher or lower earner.

Britons were also scathing of tax avoidance by corporations and the wealthy, with 81% saying it was morally wrong for companies to dodge what they owe and 76% saying the same about individuals.

The findings come in a 36-page report, 'Talking Tax: How to win support for taxing wealth', by Tax Justice UK, which carried out research with Survation and Sheffield University.

Tax Justice UK executive director Robert Palmer said: “In the long run it’s clear that Brits want fair tax rises to support better public services, tackle inequality and deal with the climate emergency.

“When you talk to people, there is no clamour for tax cuts.

“The middle of a recession is a bad time for broad brush tax rises, but higher taxes on the rich make sense and are popular.”

Mr Sunak is thought to be keen to begin repairing the damage done to public coffers.

The national debt has ballooned to £2trillion and government borrowing for the year so far has hit £150.5billion – blowing a huge hole in the public finances.

But Boris Johnson has ruled out a return to spending cuts.

Mr Palmer said: “Having listened to the views of people from Blyth Valley in the ‘Red Wall’ to voters in affluent Esher, it’s clear they’ve had enough of austerity and expect proper investment in their communities.

“If anything the Covid lockdown reinforced that.

“People support taxing wealth more.

“I’d say to the Chancellor that the public will support these policies if they are introduced in the Budget.

“It’s a political no-brainer to end the arbitrary tax advantages of some of the richest people in society as promised in the Conservative manifesto.”

Survation held 11 focus groups between December 2019 and March 2020.

Further focus groups took place in June 2020.

An online poll of 3,010 people was carried out in March 2020 and a 1,022 person poll in June 2020.