It may be easy to look at the economic growth that has occurred in the UK since the 1970s as a remarkable feat. The UK can be seen as a globalization and capitalist success story. But what the impressive numbers fail to tell is the simultaneous story of the growing gap between rich and poor, and the creation of an increasingly unequal society. Last summer, the Joseph Rowntree Foundation announced that the wealth gap in Britain was the widest it had been in 40 years. As the rich continue to see their salaries rise, the average UK citizen struggles to make do.
In Budget 2008, Alistair Darling committed to taxing non-doms (foreign national living in the UK claiming non-domicile status) £30,000 a year. Although the government did cut £100m off the total revenue it originally promised to collect from non-doms in the Pre-Budget Report, I think that this measure was an important one. Despite the threats from the City saying that this would cause wealthy investors and hedge fund owners to leave the country, the government did not give in to their demands. The presence of foreign investment bankers and entrepreneurs do make a valuable contribution to the economy, but I think it is only fair that they contribute to the country they work in by paying an appropriate and fair amount of taxes. At a time when citizens feel that only the ultra-rich (which include a large percentage of non-domiciles) are benefiting from the current tax system, I think that this move at the very least shows that the government is working towards minimizing the loopholes.
So, Who runs Britain then? Robert Preston, award-winning British journalist, author and broadcaster has written a book entitled exactly that, in which he explores the influence the wealthy are having in shaping British society. Having London as the financial capital is a great asset and is something to be proud of, but what is even more important is to make sure that the majority start reaping the benefits too.
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