Christian leaders have urged the Chancellor to further tax the richest and introduce a wealth tax.
Ecumenical charity JustMoney Movement has sent an open letter to Chancellor of the Exchequer John Healey, calling for reform of capital gains tax and what they brand ‘a properly resourced HMRC’ to close the "tax gap".
The letter is signed by former Archbishop of Canterbury Rowan Williams, Church of England bishops as well as leaders of the Methodist, Baptist and United Reformed churches.
Rt Rev Lynne Cullens, Bishop of Barking, and Rt Reverend Dr Tim Ellis, Assistant Bishop in the Diocese of Sheffield have also signed the letter.
Bishop Tim said: “Those few who become wealthy on the work and endeavours of the many should deem it a responsible act to contribute properly to the life of the nation through proportionate and fair taxation.”
Healey is not expected to introduce a wealth tax, which is an annual tax charged against the market value of an individual's accumulated assets minus debts.
In his first Budget as manager of the Government’s money, Healey is set to announce that the government will slash import tariffs on 100 everyday food items such as baked beans, garlic and chocolate. Meanwhile, alcohol duty is expected to increase in line with Retail Price Index (RPI) inflation, while the chancellor is poised to extend parental pay to 150,000 more parents per year.
The chancellor has dismissed calls from Labour MPs to increase capital gains tax, saying instead that the British economy has to take a step forward helping businesses and self-employed people. Capital Gains Tax is a tax on the profit when you sell or give up an asset that has increased in value.
In the UK, the basic-rate of Capital Gains Tax sits at 18% over £3,000 per tax year. There were calls from some Labour MPs, namely Louise Haigh, to equalise Capital Gains Tax with Income Tax, which sits at a basic rate of 20% when earning between £12,571 and £50,270.
Healey said: "I want to see this country as a country of wealth creation. I want our government decisions and policies to raise the levels of confidence, investment, and profit in British business”.
Representatives of the Methodist Conference were also quoted, looking to reframe taxation in Christian terms.
Rev Mark Slaney and Caroline Stead, president and vice-president of the Conference, commented: “Too often tax is viewed only as a burden, rather than an expression of commitment to loving our neighbours. Action is needed to tackle injustice in the tax system and ensure those with the most wealth contribute a fair share”.