The Archbishop of Canterbury calls for higher taxes to tackle ‘unjust economy’

The Archbishop of Canterbury calls for higher taxes to tackle ‘unjust economy’

Thursday, September 6, 2018

The Archbishop of Canterbury called for fundamental changes to the economy saying that the “economy is not just for everyone”.

He said: “People suffer from injustice in the economy. People suffer from the need to go to a foodbank even when you have got two adults in the household living reasonably tightly and both working.

Archbishop Justin Welby is a leading member of the Commission on Economic Justice which has published a report “Prosperity and Justice”, which recommends proposals for reform.

 

‘You don’t get the increase revenue you expect’

Ben Bradley, a Conservative MP told talkRADIO’s Julia Hartley-Brewer that higher taxes would not necessarily mean “you get the increase revenue that you expect”.

Ben Bradley, the Conservative MP for Mansfield said: “It has been pretty well proven over time that the more you try and tax people, you don’t get the increase revenue that you expect.

“Reducing corporation tax has brought more money into the treasury, not less, and we have seen with the last Labour government that taxing people just to recycle it in another form ends up meaning people are relying on in-work benefits in the end.”

In 2010, corporation tax raised just over £43bn in revenue for the government.

Since then, it has been cut from 28 percent to 19 percent and in 2016, corporation tax raised £49.7bn, an increase of £6.7bn.

Among the 73 recommendations in the report, it suggest putting workers on company boards and an increase in corporation tax. 

 

‘Money has got to come from somewhere’

Liam Byrne, the Labour MP for Birmingham Hodge Hill: “Money has got to come from somewhere so let’s put taxes up on high-network individuals a little bit, and let’s start asking companies to pay a bit more in tax as well.

“So, the money that they do create in profits actually gets reinvested in the economy rather than putting it in their bank accounts where it is doing nothing.”

He added: “Foodbank demand in Birmingham is up 12 percent but many of the people who they see are in jobs.”

There were 1.8 million contracts that did not guarantee a minimum number of hours, where work had actually been carried out under those contracts, according a report from Office of National Statistics in April 2017. This represented 6% of all employment contracts.

That is up from 905,000 people who reported that they were on a “zero-hours contract” between October and December 2016, which is 2.8% of people in employment.

Three most common reasons for people being referred to Trussell Trust foodbanks in 2017 to 2018 was “low income”, “benefit delays” and “benefit changes”.