Higher taxes could make you happier, insists Welby
But business leaders attack plan
THE Archbishop of Canterbury yesterday argued that higher taxes could make Britons happier as businesses criticised his blueprint to tackle inequality.
Launching a report by the centreLeft IPPR think-tank, Justin Welby said taxation can contribute to ‘public, shared prosperity’.
He suggested levies could be increased to fund improvements to the environment and culture, which could boost overall happiness. The report was published by a commission set up by the IPPR and chaired by Archbishop Welby. Its membership included economists and trade union leaders.
Among 73 recommendations, it suggests putting workers on company boards, an increase in corporation tax and higher pay for workers on zero-hours contracts, as well as regulating digital media firms in a similar way to utility companies. He also wants to rake in an extra £9billion a year with a revamp of inheritance tax.
But last night the report, which aims to cut ‘ damaging wealth inequality’, was criticised by business leaders, who said they did not need further burdens imposed on them.
Edwin Morgan, of the Institute of Directors, said: ‘Anyone who has spoken to businesses lately will know that now is not the time to be raising taxes and increasing burdens.’
Kate Andrews, of the free market Institute for Economic Affairs, added: ‘It’s hard to take a “fairness” report seriously that doesn’t highlight cost of living issues and supply- side issues as a main concern.’
James Price, of the TaxPayers’ Alliance, said: ‘As a fellow Anglican, I’m none too happy that Justin Welby has seen fit to endorse a high tax report that will hurt people who want to pass on something to future generations and want to keep more of their own money.’
Tory MP Andrew Bridgen dismissed the Archbishop’s comments, saying: ‘You can never tax a country to prosperity.’
The IPPR report also called for a higher minimum wage and the establishment of a new National Investment Bank.
It said that, almost a decade since the financial crisis, the living standards of tens of millions of people had ‘stagnated’, young people had seen life chances deteriorate, and the economic gulf between London and the South East and the rest of the country had widened.
Launching the report yesterday, Archbishop Welby said: ‘Prosperity depends on the security and quality of work, and the balance of work and life, the quality of our relationships, and not just about the amount of income we receive.
‘It rests on the common good as well as individual wellbeing.’ The ‘ common good’ includes political discourse, science, culture and protecting the environment, he added.
The Archbishop went on: ‘ Public safety and security, clean air and beautiful natural environments, public parks and spaces, arts and culture, the sense of belonging to a community – these are all important contributors to individual wellbeing, but can only be enjoyed if we pay for and secure them collectively.
‘For these reasons, the very nature of public good highlights the importance of public taxation in contributing to public, shared prosperity.’
Senior figures in the Church of England have previously said some people should pay more taxes. Archbishop of York John Sentamu suggested last year that taxpayers should be allowed to voluntarily ‘top up’ their income tax to boost public spending.
The Archbishop also urged tech giants to contribute a ‘proper’ share of tax, telling the BBC: ‘If we are going to have a hope-filled future... everyone has to contribute who takes from this country.
‘Everyone has to put things back and they have to put it back most of all in tax.’
The IPPR report was backed by shadow chancellor John McDonnell. He said: ‘This is today’s equivalent of the historic Beveridge report.
Just as Beveridge did for welfare, this report could transform our approach to economic policy making.’