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Wealth Richard Leonard demands real debate on taxing wealth after report exposes growing inequality

SCOTTISH Labour leader Richard Leonard called for a proper debate on taxing wealth yesterday after a report exposed the shocking levels of inequality in Scotland.

Research by the Resolution Foundation think tank found Scotland’s household wealth has exceeded £1 trillion for the first time but remains highly unequal, with younger people’s prospects increasingly dependent on inheritance.

Typical Scottish wealth is now £237,000 per household, compared with £259,000 for Britain as a whole, the report said.

But the report identified that wealth has grown much faster than incomes over the last decade, making it much harder to close the wealth gap by earning and saving.

Scottish Labour leader Richard Leonard said: “Just a 1 per cent windfall tax on the wealthiest 10 per cent in Scotland could raise £3.7 billion and put wealth back to work for the economy as a whole.

“This is no time to tinker around the edges. We need real change, not just more of the same — a more balanced economy in a more equal Scotland built on higher investment, better public services and one where the broadest shoulders bear the biggest burden.

“That’s the kind of Scotland Labour wants to build.”

The report warns that inheritance rather than earnings will become a much more important determinant of living standards.

It highlights that wealth in Scotland is nearly twice as unequally distributed as income, with a quarter of Scots having less than £500 of net savings and 7 per cent having zero savings or negative balances in their current accounts.

The Resolution Foundation said that council tax, as the biggest wealth tax, was fully devolved and, while noting recent “modest” reforms, said it could be “much more closely tied to property values.”

Poverty and Inequality Commission chair Douglas Hamilton said: “The only thing more staggering than the level of private wealth that is held in Scotland, is the extremely high level of inequality that exists.

“If there is any ambition in Scotland to address levels of poverty and inequality, it is clear that we will need to start looking at how we can ensure a more equitable distribution of wealth in our country.”

A Scottish government spokeswoman said: “We want to tackle poverty by sharing opportunities, wealth and power more equally.”

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