A coalition of religious organisations is urging the government to introduce major reforms to the UK’s tax system.
They are arguing that fairer taxation is necessary to address rising poverty, deepen investment in public services, and respond to the climate emergency.
The call comes ahead of Wednesday’s budget, where Chancellor Rachel Reeves is expected to set out the government’s fiscal priorities.
The group is made up of 18 organisations and coordinated by Just Money Movement.
They have brought together Christian, Muslim, and multi-faith charities, including Christian Aid, Faith for the Climate, and Muslim Aid.
In a joint statement, they say the UK’s current approach to taxing wealth is inadequate and leaves too much inequality unchallenged.
Their proposals centre on three main changes.
Firstly, raising a wealth tax on the richest 0.04% of households, who have increased their wealth by 250% since 2010. Secondly, aligning Capital Gains Tax with Income Tax rates so that earnings from wealth are taxed the same as earnings from work. Lastly, increasing HMRC’s capacity to close the tax gap to make it more effective.
According to the signatories, these steps would raise “tens of billions” that could be used to strengthen essential services and support a more sustainable future.
Sarah Edwards, Executive Director of Just Money Movement, said: “As faith organisations, we believe that tax reform is essential to tackling the deep challenges of poverty, inequality, and the climate crisis. We urge the Chancellor to make bold choices to tax wealth more, and more fairly, to reflect our shared responsibility to care for one another and the planet.”
Faith for the Climate highlighted the moral dimension of the reforms. Director Shanon Shah said: “Extreme wealth continues to grow for the super-rich and dirty industries such as coal, oil and gas, yet ordinary people struggle, our public services are under strain, and climate disasters are getting worse in Britain. The budget is a powerful instrument to address this crisis.”
Christian Aid emphasised the international implications. Jennifer Larbie, Head of UK Campaigns and Advocacy, said: “It’s time the Chancellor taxed the biggest polluters and funded urgent climate action around the world.”