The gap of wealth in Britain is widening and it is now practically impossible for an average worker to save enough to become rich, according to a report.
An analysis carried out by The Resolution Foundation, a left -wing reflection group, revealed that it would take average employees 52 years to accumulate savings which would allow them to go from the middle at the top of the distribution of wealth.
The total necessary would be around 1.3 million pounds sterling and assume that they save almost all of their income.
The differences in wealth are “anchored”, he says, which means that the identity of your parents-and the assets they can have-becomes more important for your standard of living than the way you work hard.
Even if the wealth of the United Kingdom has “considerably increased in recent decades”, it has been mainly powered by periods of low interest rate and increased value of assets-and not by wage growth or the purchase of new properties.
Citing the figures of the survey on the wealth and assets of the Office for National Statistics (ONS), the reflection group revealed that the wealth of households reached 17,000 billion pounds Sterling in 2020-2022, including 5,500 billion pounds Sterling (32 %) owned in property and 8,200 billion pounds sterling (48 %).
The report indicates: “Consequently, the richness of Great Britain has reached a new summit of almost 7.5 times GDP by 2020-22, against about three times GDP in the mid-1980s.
“However, despite this remarkable increase in the overall stock of wealth, the relative inequalities of wealth – measured by the share of wealth held by the richest households – have remained globally stable since the 1980s, the tenth richest households systematically holding around half of all wealth. »»
According to the reflection group, this trend has worsened intergenerational inequalities.
He indicates that the gap of wealth between people at the start of the thirties and those at the beginning of sixties more than doubled between 2006-08 and 2020-22-from £ 135,000 to £ 310,000, in terms of real liquidity.
Regional inequalities remain a problem, with an average median wealth per higher adult in London and the Southeast.
Could the wealth tax be the solution?
The report arrives seven weeks before Rachel Reeves Presents his budget on November 26, after postponing calls earlier this year in favor of a wealth tax.
The former Lord Kinnock Labor leader is one of those who have claimed one, In an interview with Sky News.
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But addressing Bloomberg last month, Ms. Reeves said: “We already have taxes on the rich – I don’t think we need a tax on autonomous fortune. »»
Previous government policies targeting the richest in Britain, including an initiative aimed at extracting billions from non-Domins, has aroused concerns about an exodus of wealth. Prime Minister denied that too many people leave the capital.
Molly Broome, main economist at the Foundation resolution, said that wealth taxes would not only be paid by the richest citizens in the country.
She said: “While property and pensions now represent 80 % of the growing share of household wealth, we must be honest that higher fortune taxes will likely fall back on retirees, owners of the South or their families, rather than being simply paid by super-rich. »»