Former Shadow Cabinet member Chris Williamson explains how Chancellor Rachel Reeves and previous chancellors have got it all wrong. It is not upto the economy to fall in line with the budget but the budget to fall in line with the economy. An economy for all not just the few.
THOUGHT FOR THE DAY
— Chris Williamson (@DerbyChrisW) October 22, 2024
I know she won't, but Labour's Chancellor of the Exchequer, @RachelReevesMP, could deliver a people's budget next week. pic.twitter.com/VToP3Scj49
Let’s stop messing about. The following is a Budget for ALL not just the few.
The goal should be to promote fairness, provide universal basic services, and create economic opportunities for everyone, with a particular focus on redistributing wealth, ensuring social justice, and securing a sustainable economy. Below is a framework for such a budget, with costings where possible.
1. Tax Reform
A progressive tax system would be at the heart of any radical egalitarian budget. The goal is to ensure that the wealthiest pay their fair share and to remove loopholes that allow tax avoidance.
1.1 Income Tax
- Introduce higher tax brackets for the wealthy: Increase income tax rates for those earning over £100,000. New brackets could be set at:
- 45% for income between £100,000 and £150,000
- 50% for income between £150,000 and £500,000
- 60% for income above £500,000
- Raise the tax-free personal allowance to £20,000, to benefit low- and middle-income earners. Estimated cost: £12 billion.
Anyone who sought to avoid or evade paying their taxes would initially face heavy fines and ultimately having their citizenship removed.
1.2 Wealth Tax
- Introduce a wealth tax: A 2% annual tax on net wealth above £5 million. Estimated revenue: £15 billion annually.
- Inheritance tax reform: Increase inheritance tax to 50% for estates worth over £1 million, while lowering exemptions for agricultural and business property.
1.3 Corporate Tax
- Increase corporation tax to 25% (as already planned by the UK government). Estimated revenue increase: £17 billion.
- Tax multinational corporations: Enforce a minimum global corporation tax rate of 25% to prevent tax avoidance by large multinationals.
1.4 Financial Transactions Tax
- Robin Hood Tax: Introduce a 0.1% tax on financial transactions, such as stock trades. Estimated revenue: £10 billion annually.
2. Universal Basic Services
Instead of focusing solely on Universal Basic Income (UBI), this plan would prioritise providing key services for free to ensure that everyone has access to the essentials.
2.1 Healthcare
- Fully fund the NHS to eliminate waiting lists and improve care quality. Estimated additional annual cost: £20 billion.
- Expand mental health services to provide free counselling and therapy on demand. Estimated cost: £5 billion.
2.2 Education
- Free universal childcare for all children from birth to age 5. Estimated cost: £15 billion.
- Abolish university tuition fees and reintroduce maintenance grants for students. Estimated cost: £10 billion annually.
- Increase funding for adult education and vocational training, focusing on lifelong learning. Estimated cost: £5 billion.
2.3 Housing
- Build 300,000 social homes per year: This would address the housing crisis and ensure everyone has access to affordable housing. Estimated annual cost: £15 billion.
- Rent controls: Cap rent increases in the private rental market and ensure that rents are linked to local wages, reducing the cost of living for renters.
All new housing would have to meet strict sustainability regulations.
2.4 Public Transport
- Free local public transport for all, covering buses, trains, and trams. Estimated cost: £10 billion annually.
All new vehicles would have to meet strict sustainability regulations.
2.5 Energy and Utilities
- Nationalise utilities (water, electricity, gas) and provide a free basic allocation of energy and water for every household. Estimated nationalisation cost: £150 billion one-off, with long-term savings due to efficiencies.
3. Social Security
An egalitarian budget would create a comprehensive safety net for all, focusing on ensuring a dignified standard of living and eliminating poverty.
3.1 Universal Basic Income (UBI)
- Introduce a modest UBI of £1,000 per month for all adults. This would replace certain benefits but not all. Estimated cost: £480 billion annually, offset by savings in administrative costs of existing welfare systems.
3.2 State Pension
- Increase the state pension to £12,000 per year to provide a dignified retirement for all. Estimated additional cost: £30 billion annually.
3.3 Child Benefit
- Increase child benefit to £100 per week per child, paid to all families regardless of income. Estimated additional cost: £25 billion.
4. Job Guarantee Programme
Introduce a Job Guarantee Programme where the government ensures a job paying the living wage for anyone who wants to work. This would help reduce unemployment and provide meaningful employment in sectors like green energy, education, healthcare, and infrastructure.
- Estimated cost: £20 billion annually (assuming uptake from 1 million workers).
5. Green New Deal
A radical egalitarian budget would place climate justice at the forefront by investing heavily in renewable energy and green infrastructure, creating green jobs, and transitioning the economy towards sustainability.
5.1 Renewable Energy Investment
- Invest £50 billion annually in wind, solar, and tidal energy to transition to a fully renewable energy system by 2035. Long-term cost savings due to reduced reliance on fossil fuels.
5.2 Energy Efficiency
- Provide grants for every home and business to install insulation, double glazing, and heat pumps, reducing energy consumption and bills. Estimated cost: £10 billion annually for 10 years.
5.3 Green Jobs Programme
- Create 1 million green jobs in renewable energy, public transport, and environmental conservation. Estimated cost: £25 billion annually.
6. Justice and Equality
A radical budget should focus on social justice by addressing systemic inequalities, particularly those affecting marginalised communities.
6.1 Criminal Justice Reform
- End privatisation of prisons and reduce the prison population by focusing on rehabilitation, not punishment. Estimated savings: £2 billion annually.
- Invest in community-based alternatives to incarceration: Focus on mental health services, addiction treatment, and restorative justice programmes. Estimated cost: £5 billion.
6.2 Gender Equality
- Close the gender pay gap by requiring companies to publish pay data and imposing penalties on those that fail to address disparities. Provide funding for affordable childcare and paid parental leave. Estimated cost: £5 billion annually.
6.3 Racial Equality
- Fund programmes aimed at reducing racial disparities in education, healthcare, and employment. Estimated cost: £2 billion annually.
7. Defence and Foreign Policy
Radically rethinking the UK’s defence policy would free up resources for domestic priorities while focusing on diplomacy and conflict prevention.
- Reduce military spending by 25% over the next five years, reallocating £10 billion annually to domestic priorities like education, healthcare, and green energy.
Any country that contravenes strict rules on use will simply have all licenses and agreements suspended.
8. Costings Summary (Estimated Annual Costs and Revenues)
| Policy | Cost (£ billion) |
|---|---|
| Increase tax-free personal allowance | 12 |
| Wealth tax and inheritance tax reforms (revenue) | -20 |
| Corporate tax increase (revenue) | -17 |
| Financial transactions tax (revenue) | -10 |
| UBI | 480 |
| Increase state pension | 30 |
| Increase child benefit | 25 |
| NHS funding boost and mental health services | 25 |
| Free childcare | 15 |
| Abolish university fees | 10 |
| Social housing construction | 15 |
| Free public transport | 10 |
| Green energy and job creation | 85 |
| Job Guarantee Programme | 20 |
| Criminal justice reform and racial equality | 7 |
| Defence spending reduction (savings) | -10 |
| Total Cost (excluding revenues) | 764 |
This radical egalitarian budget is designed to create a fairer society, where essential services like education, housing, healthcare, and public transport are universally accessible, and economic inequality is drastically reduced through progressive taxation and wealth redistribution. By shifting resources from military spending and corporate tax avoidance towards social welfare, green jobs, and universal basic services, the economy can work for everyone, not just the privileged few.
While the annual costs (approximately £764 billion) are high, much of it is offset by new revenues (approximately £62 billion), creating a more just and equitable society while maintaining fiscal responsibility.
For those who do not believe it can be done:
