Inequality expert dumped by Labour says the Budget falls short

Inequality expert dumped by Labour says the Budget falls short of what’s needed

An inequality expert dumped by Labour says the Budget falls short of what’s needed – and we should pay attention to Faiza Shaheen’s claims.

Dr Shaheen has been senior researcher on economic inequality at the New Economics Foundation, Head of Inequality and Sustainable Development at Save the Children UK, and Inequality and Exclusion Program Director at the Center on International Cooperation, New York University.

But Labour dropped her as its candidate in Chingford and Woodford Green – against Tory monster Iain Duncan Smith – on the basis of social media messages she published over a 14-year period including time when she was not a member of the party – including one about her experiences of Islamophobia within Labour.

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She was one of many ethnic minority female election candidates to be dumped by Labour – which was possibly a mistake, considering her area of expertise is inequality.

And she is also a visiting professor in practice at the International Inequalities Institute of the London School of Economics, for which she has written a critique of Rachel Reeves’s Budget – that is not favourable.

Highlights include:

The huge wealth, income, regional and class inequalities in this country are holding back our economy, eroding our democracy, stopping social mobility, undermining our wellbeing and creating fertile ground for the far right.

had the Labour government made reducing inequality a driving policy objective, they would have demonstrated that they are serious on delivering on the changes they promised ahead of the July election.

The Chancellor did not mention the word inequality at all… it looks like a huge missed opportunity.

Most of the new taxes announced today will be raised from employment rather than wealth.

Changes to capital gains tax amounted to minor tweaks to the rates, and according to our colleagues at the Centre for the Analysis of Taxation (CenTax), will continue to be easily avoidable by those with the means to do so.

Inheritance tax changes also came with sizeable reliefs, and so will fail to raise much more (the rich are notoriously good at working around loopholes).

The minimum wage increase will make a difference to the pocket of the three million workers on low pay, but the increases we’ve seen to the cost of living – in particular energy and water prices, and increases in social rents – means this is unlikely to make those at the bottom feel materially better off overall.

This, alongside the lack of new money for welfare spending, means that the poorest are still left extremely vulnerable and poverty is set to rise.

Regional investment plans need to be looked at in detail, and transport spend will be particularly welcomed. But again, the numbers announced were small compared to what is needed.

She called for Labour to adopt an inequality-centred approach to economic growth and added:

All hope is not lost. A cross-section of MPs, as well as some millionaires themselves have been calling for a two per cent tax on wealth that could raise up to £24 billion per year. If we can add to this chorus of people calling for a wealth tax over the next year, we might finally see years of rising inequality reversed.

Source: The UK Budget from an inequalities angle | LSE Inequalities


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