I’m a millionaire and agree Britain’s richest should pay a wealth tax

The possibilities for how that money could be spent are endless – from investing in our NHS and schools to financial safety nets for those that desperately need them

Money from a wealth tax could be used to support services like the NHS (PA)

With the first Covid-19 vaccinations taking place this week in the UK, there is much talk of the end of the pandemic and life returning to normal. Yet so much has irrevocably changed, we cannot allow business as usual to be the sole economic goal.

Since the start of the crisis in March, it’s estimated that the number of people living in poverty in the UK has risen by almost 700,000 people to over 15 million. At the same time, the country’s billionaires have amassed a combined fortune of over £156bn – up over 34 per cent from last year. Clearly, we are not all in this together and it’s painfully evident that Covid-19 has fuelled existing inequalities here and in so many developing countries around the world.

As a millionaire, my family and I have been shielded from the stress and uncertainty of lost income and business that so many people have endured this year. I have not had to worry about mortgage payments or miss meals in order for my children to eat. I have an undeniable privilege that millions of people do not. And this is exactly why people like me have a moral responsibility to make a bigger contribution to taxes, to help support those less fortunate than ourselves.

This week, a group of academics, lawyers, economists and accountants from the Wealth Tax Commission found that a one-off, one per cent wealth tax on the richest could raise £260bn in the UK over the next five years. It’s an enormous sum and one that I would be very happy to contribute towards.

The possibilities for how that money could be spent are endless; from investing in our NHS and schools, increasing social protection safety nets for those that desperately need them, to helping people thrive and survive in poorer countries. There has never been a more crucial time to raise revenues and a wealth tax would certainly give us a big head start.  

But for millionaires and billionaires, to just pay tax on our wealth would be both a missed opportunity and unfair. Because on average, we are the individuals most responsible for the highest carbon emissions. New analysis out this week from Oxfam shows that the wealthiest one per cent in the UK have a carbon footprint that is six times that of the average Brit, and 11 times that of someone in the poorest half of our society. I know that I am part of the problem and while I’m personally engaged in several environmental initiatives and offset the emissions of my family, this simply shouldn’t be a matter for personal choice.  

The introduction of a carbon tax levied on transport and high carbon footprint products – and of course on corporations – is essential if we are to tackle the climate crisis. Other proposals such as a frequent flyer tax, perhaps even bans on luxury high carbon emitters such as private planes, should definitely be considered and will go further in addressing carbon inequality.  

As with the wealth tax, revenues raised from taxing carbon could then be used to invest in green energy and technologies, create hundreds of thousands of green jobs and environmental initiatives such as reforestation and green transport focussed first in those areas impacted by poor air quality, most typically areas with the highest rates of deprivation. It’s a win/win scenario.

If we are to truly build back better – to lift everyone up, not just the richest, and avoid catastrophic climate change – the wealthiest amongst us, like me, should be taxed for their carbon footprint, as well as their wealth.

Gemma is co-founder and director at Eleos Compliance. She’s an entrepreneur, philanthropist and international project manager