Tweet
Two-thirds of Britons want the rich to face punitive tax rates not seen since the 1980s, according to a new poll which suggests that the recession has hardened attitudes towards the wealthy.
Bankers are now seen second only to footballers as being overpaid, while seven in 10 think that ordinary workers should sit on remuneration committees setting executives' pay to ensure that high salaries are deserved.
The findings - in a poll for the think tank the Fabian Society, to be published this week - suggests that the credit crunch has provoked a backlash against the rich, with the public seeking retribution for alleged mistakes made by City figures.
The findings will encourage Labour MPs who want Gordon Brown to go further in next spring's budget and rebalance the tax system in favour of more modest earners.
His gamble in pledging to introduce a top rate tax of 45 per cent for those earning more than £145,000 is backed by three-quarters of those polled, while 69 per cent would support Labour introducing a higher top rate of 50 per cent for those earning more than £250,000.
Tax has not been that high in the UK since 1988, when Margaret Thatcher brought the top rate down from 60 per cent. Neil Kinnock's threat to introduce a 50p tax rate in the 1992 election is widely held in New Labour circles to have cost him Middle England's support.
However, the Fabian report found new demand for forcing the wealthy to contribute more, with 70 per cent of those polled by YouGov agreeing that "those at the top are failing to pay their fair share towards investment in public services".
Louise Bamfield, senior research fellow at the Fabian Society, said the public had previously considered footballers and business "fat cats" overpaid but had largely accepted it as a fact of life. That had now changed. "There is a shift to a new group of people - bankers and traders - and the sense that not only have they been paid too much but what they have been paid has had a direct negative consequence on other people," she said.
"People had assumed that this group were more than competent and it must have been deserved. There is now a feeling that these people have been responsible for others losing their jobs."
However, she said the anti-rich backlash had not greatly benefited those at the bottom. Focus groups conducted alongside the poll found that while there was sympathy for those losing their jobs, people still expected them to find work as quickly, despite the recession. Those polled significantly underestimated the cost to the Exchequer of tax avoidance by the wealthy and over-estimated the cost of benefit fraud. They blamed the government for failing to stop tax dodges rather than individuals, but saw benefit fraud as the fault of the individual.
The findings may explain why Labour's poll ratings have increased; 55 per cent of the public blame reckless lending by the banks for the credit crunch, while fewer than a quarter think the government was mainly responsible.
Labour's private polling suggests that two-thirds of Britons blame America for starting the credit crunch - the argument that Brown uses, to the frustration of Conservative MPs who argue that he left the economy overexposed. Bamfield said the poll suggested Brown had pitched his tax rise correctly. More than half of respondents wanted not only to see bonuses reduced, but for executives of failed companies to repay past bonuses as penance for mistakes.
guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds
More...
