Wealth gap rises by nearly 50% in less than a decade

The wealth gap between the richest and poorest in the UK soared by nearly 50 per cent in less than a decade, as stalling wages and rising asset values fuelled inequality at the height of austerity, new analysis suggests.

- ANDY GREGORY

In a new report examining the “profound systemic impacts” of this rising inequality, researchers with the Fairness Foundation warn that it “seriously exacerbates a wide range of arguably existential risks” to the UK, such as social unrest, failure to act on the climate crisis, economic stagnation and the decline of democracy.

As new polling for the charity found that three in four voters are concerned about the impact of wealth inequality in Britain, Sir Keir Starmer was urged to act to mitigate these risks, in an open letter signed by dozens of academics, charity and business leaders.

The wealth gap has now reached a level where it “actively undermines growth and productivity” and is harming the new Labour government’s prospects for achieving its five key missions on the economy, NHS, crime, clean energy and education, the letter to the prime minister warns.

Urging “bold action”, the signatories – who include the leaders of Age UK and Disability Rights UK – called for the Budget to better tax wealth by raising capital gains tax and scrapping the “non-dom” regime, and for a looming review of national resilience to examine the strategic risks posed by wealth inequality.