Taxing the super-rich would raise billions for green schemes, says Greenpeace

Greenpeace is calling for a temporary tax on the super-rich to pay for eco-friendly initiatives such as home insulation, complimentary bus travel and the creation of environmentally sustainable jobs.

An analysis by economist Ben Tippet from King’s College London, commissioned by the environmental organisation, suggests that a "national renewal tax" targeting the wealthiest 0.1% could generate at least £130bn for the Government over five years. The proposed levy would be an annual 2.5% on individual fortunes exceeding £10m throughout the parliamentary term.

According to the report, this sum could fund a raft of actions, starting with the insulation of the UK's 19 million poorly insulated homes and providing winter energy bill assistance for those in need. On the transport front, the funds could be used to subsidise public transport costs, offer free bus rides to under-25s, and introduce a "climate ticket" allowing unlimited train travel across Britain for just £49.

The paper also outlines plans for training programmes enabling 3.2 million workers in high-pollution sectors to transition to green jobs, as well as aiding farmers in adopting agro-ecological practices to bolster the UK’s food security, purify rivers, and promote nature restoration. Greenpeace argues that these measures would not only stimulate the economy and bridge social gaps but also significantly reduce greenhouse gas emissions and address the climate emergency.

Greenpeace proposals were unveiled days ahead of the eagerly anticipated address by Chancellor on October 30. The environmental organisation points to the "national renewal tax" that was inspired by guidelines from the Wealth Tax Commission.

According to Greenpeace, such a levy would only impact fewer than 75,000 UK residents but has the potential to add an £130bn to £183bn to the government's coffers, depending on the levels of avoidance and evasion. The lowest estimate accounts for a 42.5% rate of avoidance or evasion, which equates to 1% of the GDP and 3.1% of all taxes collected annually by authorities, as detailed in Greenpeace’s report.

It has been estimated that the richest 1% of people in the emit as much carbon as two-thirds of the global population, while in the UK the richest 0.1% emit 12 times more than the average person. Georgia Whitaker, an eco-campaigner for Greenpeace UK, said: "The oversized carbon footprint of the super-rich is a clear rationale for ensuring that they play an oversized role in fixing the crisis that they have an oversized role in creating. It’s time the UK Government taxed their vast wealth."

She argues that tapping into the immense fortunes of a wealthy minority could fund climate actions benefiting the majority. Millionaire investor Julia Davies said: "Don’t believe the Government when they say the money isn’t there. Because it is. ".

"As someone who would be covered by this tax, I can tell you that if you are fortunate enough to have wealth over £10m you can afford to make this contribution to a better future for Britain and still enjoy a very good lifestyle indeed."

Mr Tippet said: "The case for a new wealth tax has never been stronger. Wealth inequality has been rising for decades. This report sets out a fair, balanced and feasible proposal for a new wealth tax on the super-rich to tackle these issues, backed up by sound economic theory and empirical evidence."

Meanwhile, the Treasury highlighted Ms Reeves' statement during her appearance on Radio 4’s Today programme where she dismissed the idea of a wealth tax. The Chancellor clarified on air: "We’re not going to be bringing in a wealth tax, but there will be a number of difficult decisions around tax and spending and welfare."