An interesting report has just been published by Professor Guy Standing into the implications of providing every person in the UK with a basic universal income of £48 per week. This to be funded at least in part by the removal of 1,156 assorted tax reliefs currently available (to those who know about them or are rich enough to benefit from them).
The report was commissioned on behalf of the Progressive Economy Forum and makes quite interesting reading if you take a purely objective view. Unsurprisingly this has lead to differing opinions on the political divide with the Labour Party – who have previously mentioned the idea of a basic income indicating they would consider it ahead of drawing up its next election manifesto.
Not surprisingly it raised the hackles of the Conservatives with their deputy chairman Helen Whately stating it would be “a kick in the teeth to hardworking taxpayers” indicating that the benefit payments would go to everyone from Premier League footballers to investment bankers and even prisoners, costing billions, while hammering ordinary workers in the pocket by scrapping the tax-free income allowance”. The Treasury also weighed in, saying it was “committed to supporting working people keep more of what they earn while providing a strong and sustainable safety net for those who need it”.
However, their statements seem to miss the point, that it would be paid for by removing the multitude of tax reliefs currently available – most of which only benefit the wealthiest (including Footballers, Bankers & MPs of course), and the tax-free income allowance is only worth around £48 per week anyway, so the vast majority of working people wouldn’t notice any difference. Further, the Treasury’s much-vaunted safety net comment is incredulous given the suffering that Universal Credit is causing!
A move to a basic income is probably not the answer to the increasing income inequality in the UK but it might be a start.
Anyone who wants to read the report can download a copy here
Image: Ink Drop/Shutterstock
