A Fairer and More Efficient UK Economic System

A Fairer and More Efficient UK Economic System

Introduction

The UK faces growing economic challenges—rising inequality, government inefficiencies, and a tax system that benefits passive wealth over earned income. We need a fairer, more efficient system to create sustainable growth, reduce reliance on benefits, and open up opportunities for all.

This plan outlines practical reforms that could generate £77.5 - £111 billion per year—funds that could be reinvested into public services, infrastructure, and tax relief for working people.

Why This Matters:

• 14 million people in the UK live in poverty, despite many working full-time.
• The wealthiest 1% hold over 20% of the UK's wealth, while corporate tax avoidance drains billions from public funds.
• Housing Benefit costs taxpayers £15 billion annually, mostly benefiting private landlords instead of creating affordable housing.

This proposal provides practical solutions that benefit both low and high earners, ensuring a stronger, fairer economy for all.

Tax Passive Income Fairly

The Problem

• The UK tax system favours wealth over work—investment income is taxed at lower rates than wages.
• Capital Gains Tax (CGT) and dividend tax rates are significantly lower than income tax, benefiting the wealthiest individuals.

Proposed Reforms

Increase Capital Gains Tax (CGT) to match income tax rates (20%, 40%, 45%) and reduce the CGT allowance from £6,000 to £2,000 for high earners.
Increase Dividend Tax Rates to align with income tax rates and remove the dividend allowance for top earners.
Reform Rental Income Taxation by eliminating mortgage interest relief for high-income landlords and taxing rental income at the same rate as wages.

Estimated Revenue Impact

£25-30 billion per year

Why This Benefits Everyone

Higher wages = more consumer spending = stronger businesses
Well-funded public services = healthier, more productive workers
Lower inequality = less crime and social instability
Stable tax system = safer investments and stronger markets
Public investment = better infrastructure, benefiting businesses

Reduce Government Waste & Stop Corporate Tax Avoidance

The Problem

• Large corporations exploit tax loopholes, shifting the burden onto workers.
• Billions are wasted on inefficient outsourcing, MP expenses, and unnecessary House of Lords costs.

Proposed Reforms

Introduce a Minimum Corporate Tax Rate of 15-20% to prevent tax avoidance.
Crack Down on Profit-Shifting by enforcing stricter multinational tax regulations.
Reduce Outsourcing & Contract Waste by prioritising in-house public service delivery.
Reform MP Expenses & House of Lords by reducing allowances and limiting lifetime peerages.
Increase Taxes on Luxury Goods & Private Jets by raising VAT on high-end items and closing tax loopholes.

Estimated Savings & Revenue Impact

£47.5-71 billion per year

Invest in Housing to Reduce Benefit Dependency

The Problem

• Housing Benefit costs taxpayers billions while funding private landlords instead of building homes.
• A shortage of affordable housing forces reliance on expensive temporary accommodation.

Proposed Reforms

Build More Social Housing to reduce long-term Housing Benefit costs.
Cap Rents in High-Inflation Areas to prevent excessive rental increases.
Use Public Land for Housing rather than selling it to developers for profit-driven projects.

Estimated Savings

£5-10 billion per year

Reform the Benefits System for Fairness & Efficiency

The Problem

• The majority of benefit recipients are either sick, disabled, or in low-paid work.
• Low wages mean businesses rely on taxpayer-funded benefits to supplement income.

Proposed Reforms

Increase the Minimum Wage to a Real Living Wage to reduce reliance on in-work benefits.
Ensure Disability Benefits Are Fair and Accessible by removing punitive assessments and delays.
Scrap Harsh Benefit Sanctions that leave vulnerable people without support.
Speed Up Universal Credit Payments so new claimants receive funds within five days.
Invest in Retraining and Employment Support to help people transition into higher-paying jobs.

Total Estimated Savings & Revenue Increase

£25-30 billion – Fair taxation on passive income.
£47.5-71 billion – Stopping corporate tax dodging & government waste.
£5-10 billion – Housing investments reducing benefit reliance.
Long-term savings – Fairer wages reducing need for benefits.

TOTAL ANNUAL REVENUE & SAVINGS: £77.5 - £111 billion

Call to Action: How You Can Help

Contact Your MP – Demand action on fair taxation and economic reform.
Join the Discussion – Share this proposal on social media and with community groups.
Support Public Awareness – Advocate for policies that benefit both businesses and workers.

Will you stand for a fairer economy? Let’s take action together.