Rich get richer under Labour
THE super-rich have become even wealthier under New Labour, according to new analysis published. Experts claim the top 1% of the UK's earners enjoy a bigger share of the nation's wealth than at any time since the 1930s.
At the same time, the gap between rich and poor has become wider than ever under Prime Minister Tony Blair.
The 600,000 richest people in the top 1% doubled their total wealth to £797bn in the first six years of Labour rule. While their share of the nation's wealth has grown from 20% to 23% since 1997, the share belonging to the poorest 50% shrank from 10% in 1986 to just 5% iin 2002.
Intriguingly, two of the top five people who have gained most under Blair are high-profile Labour donors. Formula One boss Bernie Ecclestone saw a 745% rise in his wealth to £2.3bn, while Lakshmi Mittal, the richest Asian in Britain, enjoyed a rise from £1.5bn to £3.5bn under Labour.
According to analysis by the Left-wing magazine New Statesman, the two who gained the most are retailer Philip Green, who has made most of his £3.61bn fortune since 1997, and the Duke of Westminster, who has gained £3.3bn since 1997 and is now worth £5bn.
The figures underscore Blair's declaration during the 2001 General Election campaign that 'it's not a burning ambition for me to make sure David Beckham earns less money'. But they are likely to alarm Left-wing Labour MPs who want Chancellor Gordon Brown to impose higher taxes on top earners.
Including council tax and VAT, the top fifth of earners pay a smaller proportion of their income in tax - 34% - than the bottom fifth, who pay 42%. While the Chancellor has made efforts to redistribute money to lower income families through a string of tax credits since 1997, it is highly unlikely there will be any changes to the tax regime when he unveils his Budget on 16 March.
The super-rich have seen their bank balances helped by a loophole known as 'non-domiciled resident tax status', which exempts those who spend fewer than 90 days a year in the UK from paying tax on any earnings overseas or from investments in offshore tax havens.
