Britain’sunequalsociety
Inequalitieshandout2
UKonlyG7countrywithwiderinequalitythanatturnofcentury
Richest10%control54.1%ofBritain’swealth,upfrom51.5%in2000and52%
beforefinancialcrisis,saysCreditSuisse
BritainistheonlycountryintheG7groupofleadingeconomieswhereinequalityhasincreasedthiscentury,accordingtoareportpublishedonTuesday.
Theamountofthecountry’swealthcontrolledbytherichest10%increasedto54.1%thisyear,upfrom51.5%in2000,accordingtotheannualCreditSuisseglobalwealthreport.
Theincreaseininequalityhascoincidedwithaboominthenumberofrichandsuper-richpeopleinBritain.Therearenow44dollarbillionairesinBritain,comparedwitheightatthestartofthecentury,whilethenumberofpeoplewhosenetworthisatleast$50m(£31m)almostquadrupledto4,660.
Astherichhavegotricher,lowandmiddle-incomehouseholdshavebeensqueezedbyfallingrealincomescausedbyyearsofrisinghouseholdbillsandlackofwageincreases.
Text:
Images:
Oxfam’sheadofinequality,EmmaSeery,said:“IntheUK,successivegovernmentshavefailedtogettogripswithrisinginequality.Thisreportshowsthatthoseleastabletoaffordithavepaidthepriceofthefinancialcrisiswhilstmorewealthhasfloodedintothecoffersoftheveryrichest.”
Therichest10%oftheUKpopulationhavecontinuedtogetwealthiersincethefinancialcrisis–theirshareofthewealthwas52%in2007.Thereportsaystherichhavebecomewealthierbecausefinancialassetssuchasshareshaveriseninvalue.Thoseassetsrosestronglyasinvestorslookedforhigherreturnswithinterestratesatall-timelows.
AnthonyShorrocks,whohelpedtowritethereport,saidtherecoveryofLondon,itssoaringpropertypricesanditspositionastheUK’sfinancialpowerhousewasafactorinBritain’srisinginequality.InotherEuropeancountriessuchasGermanyandItaly,hesaid,“theydon’thaveacitythatdominatesinquitethesameway”.