Greenpeace calls for temporary tax on super-rich to fund environmental measures

It proposes a temporary annual 2.5% tax on all individual wealth above £10 million over the parliamentary term

Greenpeace is calling for a temporary tax on the super-rich to help fund green measures such as insulating homes, providing free bus travel and creating green jobs.

A report written by economist Ben Tippet from King's College London on behalf of the environmental group said a "national renewal tax" on the richest 0.1% of the population could bring in a minimum of £130 billion in revenue for the Government over the next five years.

It proposes a temporary annual 2.5% tax on all individual wealth above £10 million over the parliamentary term.

The report said the money could be spent on a series of measures, starting with insulating the 19 million draughty homes in the UK and energy bill support in the winter months for vulnerable households.

In terms of transport, the paper said it could help to cap public transport fares, provide free bus travel for people aged 25 and under, and fund a "climate ticket" for trains that gives users unlimited access to rail travel across Britain for £49.

It said training schemes could be set up to enable the 3.2 million workers in high-emitting industries to retrain for green jobs and could support farmers to roll out agro-ecological methods that enhance the UK's food security, clean up rivers and deliver nature restoration.

Greenpeace said all this would simultaneously boost the economy and reduce inequalities, while cutting greenhouse gas emissions and tackle the climate crisis.

The proposals come days ahead of Chancellor Rachel Reeves delivering her first Budget on October 30.

The methodology, design and implementation of the "national renewal tax" was drawn from recommendations set out by the Wealth Tax Commission, Greenpeace said.

It argued that the proposed tax would affect fewer than 75,000 people in the UK but could raise between £130 billion and £183 billion for the Treasury, depending on levels of avoidance and evasion.

The lower estimate allows for a 42.5% avoidance or evasion rate, equivalent to 1% of gross domestic product and 3.1% of total tax revenues taken in by the Government each year, the paper said.

It has been estimated that the richest 1% of people in the world 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, Greenpeace UK's climate campaigner, 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."

"By tapping into a fraction of the wealth of a few thousand people, we can pay for climate solutions benefiting millions."

Julia Davies, a millionaire impact investor who is supporting the report, 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 £10 million, 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."

The Treasury pointed to comments Ms Reeves made on BBC Radio 4's Today programme where she ruled out introducing a wealth tax.

The Chancellor told the broadcaster: "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."