A left-leaning think tank, Compass, headed by Neal Lawson, an ally of Labour’s Prime Minister Andy Burnham, has called on him to introduce a substantial wealth tax on the richest households in the country. The group proposes a tax rate of between 5% and 10% on individuals with wealth exceeding £10 million.
Compass’s report suggests that the revenue generated from this wealth tax could be used to fund a universal basic income aimed at supporting citizens in need. The authors argue this approach would help address income insecurity for groups such as food producers and creative artists, who lack guaranteed earnings despite their significant contributions to national culture and food security.
The report also advocates for the establishment of a national commission to explore how Basic Income initiatives might be integrated into an expanded welfare system. This would represent a shift towards more equitable social support mechanisms.
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Furthermore, Compass emphasises the importance of fostering community leadership beyond traditional hierarchical models. They propose the ‘For Us, By Us’ initiative, which will pilot programmes nationwide over the next five years. This project aims to challenge conventional leadership norms and build confidence by highlighting examples of everyday leadership within communities.
In addition, the report recommends banning most private and corporate donations to political parties, replacing them with state funding allocated based on votes or membership numbers, while allowing small nominal donations. This move is intended to rebuild public trust in politics by reducing perceptions that wealthy donors unduly influence policy - a proposal supported by Labour donor Dale Vince and estimated to cost about £1 per taxpayer annually.
On the topic of foreign aid, Compass calls for a reassessment of its purpose. They criticise cuts to the development budget, labelling them as short-sighted and counterproductive. The report highlights that much aid money returns to the global north, benefiting wealthy countries and organisations rather than fostering sustainable development in recipient regions. It critiques the current UK aid model for promoting dependency and neoliberal policies rather than empowering recipient nations.
The abolition of the Department for International Development (DFID) and subsequent issues within the Foreign, Commonwealth & Development Office (FCDO) are also addressed. Compass argues that these changes have weakened the UK’s capacity to deliver effective aid and suggests that a radical restructure is necessary to better support international governments and institutions in achieving improved human and environmental outcomes.