I don’t care about the super-rich, despite research from the Resolution Foundation that shows the top 1% of Britain’s earners pocket a massive 10 pence in every pound. As the poorest 50% of the population takes home in total only 18 pence, this reveals a gaping cash chasm between those in the top tiers of society and everyone else.
While this is the wealth gap that seems to stir most emotions, it is not the one that matters most to the great mass of people.
Multi-million pound bonuses for inept, cheating bankers, and the tax-dodging antics of some, provide reliably fertile ground for any politician. Along with almost everyone, I have no tears to shed for this hyper-moneyed minority who deserve everything that’s coming to them – and a lot more that apparently isn’t.
But the rest of Britain’s oligarchs and tycoons are welcome to their billions, to their fast cars and Knightsbridge mansions. So long as they’re paying taxes, they’re of no interest to us.
Because it’s not the gap between the super-rich and the rest of us that matters – it’s the gulf between the barely-coping and the managing-just-fine. Politicians need to talk more about this worrying divide instead of trying to distract us with billionaire bashing. We can tax them as much as Ed Miliband wants, but it still won’t pay for Britain’s short-fall in living standards.
According to the Resolution Foundation’s February report, Squeezed Britain, more than 10 million British adults are living on incomes between £12,000 and £30,000.
So the wealth gap we should worry about is this:
• The difference between a family that can afford a meal out every so often, and those who never can
• The gap between those who can qualify for a loan to buy a compact car, and those who can’t
• The gap between the family that can save for a week-long holiday in Spain, and the one that cannot afford the nearest Butlin’s without taking the children out of school so they can take advantage of off-peak prices
• The difference between those who can treat themselves to a bottle of wine once or twice a week, and those who can only when Tesco offers cut-price deals on alcohol
• The gap between the infirm and elderly trapped at home, and those who can afford a mini-cab to take them to a cinema or to see friends
The essence of the Labour Party’s mission has always been to raise up the poor.
As labour market conditions force more people into part-time, low-wage jobs, we urgently need a five-year plan setting benchmarks to raise up the living standards of Britain’s hard-pressed majority. Their progress, their opportunities and ability to move up the jobs ladder, buy cars and take holidays, must become our key performance indicator.
Budget Day is here again. As politicians of all parties sharpen their messages on taxation, austerity and growth, we need to start a conversation about wealth thresholds that make a real difference to real people.
This piece first appeared at http://www.speakerschair.com on 20th March 2013
Kath Raymond Hinton 