Exposing the ‘No Money’ myth

A common pronouncement the government makes is there is less money around, particularly as a justification for the wide-ranging cuts. But analysis shows this is far from the truth

Office for National Statistics data published in June found that the annual disposable income had increased by £940 for the richest fifth of households between 2011/12 and 2012/13, while that of all the other groups fell by about £250. The poorest households experienced the sharpest fall of all with a loss of £381.

The 1,000 richest Britons increased their wealth by £70 billion last year – enough to give every worker a £2,000 pay rise. So there is plenty of money around, it’s just a choice of who to take it from – the rich or the poor?

Corporation tax has been cut every year under the coalition government – from 28% in 2010, and will go down to 20% in April next year.

The government also cut the rate of tax for the richest 1% by cutting the top tax rate from 50% to 45%.

The money is there: the banks and other tax-dodging companies have got it in their tax havens.

The High Pay Centre has more information about pay inequality.