Wealth redistribution is good for growth | Letters

The reasons that Andy Beckett adduces for Labour foregrounding the redistribution of wealth are all valid and appropriate (Why is Labour so afraid to admit that we must tax the rich? 11 July). But there is one that is even more compelling and even more central to government priorities.Far from wealth redistribution being inimical to economic growth, there is overwhelming evidence – not least from international organisations like the International Monetary Fund and the Organisation for Economic Co-operation and Development – that redistribution to ensure a fairer distribution of income and wealth is extremely positive for economic growth, the main reason being that the less well off spend a higher proportion of their more limited incomes, whereas the better off tend to save or invest in their assets; there is no or very little “trickling down”. In fact, as a result of increased economic inequality, and even though interest rates remain historically low, the major anglophone economies continue to suffer a classic case of what Keynes called “underconsumption” due to the inability of the poorer members of society to keep up previous levels of demand for goods and services.Roger BrownAuthor of The Inequality Crisis The concept of “wealth taxation” takes up much space in the Guardian

Rachael Maskell ‘upset’ for Labour party as she confirms her suspension – as it happened

Rachael Maskell, the Labour MP who ended up leading the revolt against the welfare bill (see 3.13pm), has confirmed that she has also been suspended by the parliamentary party.As PA Media reports, the York Central MP said she had been suspended for “standing up for my constituents” over the benefits plans.Maskell said she had had a “positive conversation” with the chief whip, adding:He knows my heart and why I did what I did. I explained there are lines I can’t cross because of where I come from in politics with my faith

Commons at pompous worst as Afghan data breach proves too much bother for Badenoch | John Crace

For a moment it felt as if the dam might be about to burst. To let the anger in. On Tuesday, the Commons had been at its most pompous, most clubbable worst. Drowning in self-righteousness as the defence secretary, John Healey, gave a statement on the leaked Afghan email, the superinjunction and the £850m bill to the taxpayer. It was deeply regrettable, MPs on all sides agreed, but in the end probably just one of those things

UK government putting pressure on nature groups to drop opposition to planning bill

The government is putting pressure on wildlife organisations to drop their opposition to its planning bill, the Guardian has learned.Some of Britain’s biggest nature charities including the RSPB, Wildlife Trusts and the National Trust say the legislation risks widespread destruction of nature. The charities want a key section of the legislation, part 3, scrapped entirely because they say it is a “licence to kill nature”.Leading figures from the organisations were summoned by the government to a meeting last Friday where officials put forward nine amendments to the language of the bill, which they say offer greater environmental protections. In return for accepting these, ministers want the nature groups to stop their campaign, the Guardian has established from several sources

Sick pay changes could benefit UK firms by up to £2bn, TUC says

Changes to sick pay to cover part of workers’ salaries from the first day off could end up benefiting British businesses by as much as £2bn, according to analysis commissioned by the UK’s main union body.The Trades Union Congress (TUC), which is pushing for the government to stick with its plans for workers’ rights, said modelling showed businesses would gain benefits of £2.4bn thanks to productivity boosts, while facing direct costs of £425m to pay for extra sick days.Sick employees in the UK are currently entitled to statutory sick pay only from their fourth day of illness, including weekends and days on which people do not usually work. The government’s employment rights bill, which is being debated in the House of Lords, proposes to abolish the wait, putting the UK in line with countries such as Germany and Sweden

HMRC criticised by watchdog for failing to track billionaires’ tax

HM Revenue and Customs has been sharply criticised by parliament’s spending watchdog for being unable to track how many billionaires pay tax in the UK.In a highly critical report on the collection of tax from wealthy individuals, the influential Public Accounts Committee (PAC) said HMRC could not say how much the super-rich either contributed to the exchequer or avoided.Highlighting “significant opportunities to collect more revenue”, it warned that the lack of clarity risked damaging public confidence and called on the tax authority to take immediate action.It comes as Keir Starmer’s government faces growing demands to increase taxes on wealth after Labour’s welfare U-turn earlier this month raised fresh questions over the health of the public finances.Ministers have warned of “financial consequences” after the backtracking on disability benefits and winter fuel payments for pensioners, which will cost more than £6bn