Widening Wealth Gap: The Asset Price Surge in Britain
The Resolution Foundation highlights the growing wealth disparity in the UK, driven by rising asset prices. The top 10% of British households hold half the nation's assets, making it hard for average earners to catch up. The gap, equivalent to 52 years of average income, raises questions about potential wealth taxes.
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- United Kingdom
A recent analysis by the Resolution Foundation reveals a stark widening in the wealth gap among British households. The wealthiest 10% continue to possess half of the country's total assets, a trend largely unchanged since the 1980s.
Rising asset values, notably in real estate and private pensions, are complicating efforts for the average earner to make financial headway. In the period from 2020 to 2022, the average wealth of the top 10% surpassed that of a median household by 1.3 million pounds.
The divide now represents 52 years of average income, up from 38 years previously, exacerbated by soaring house prices, particularly in London. The findings fuel discussions on potential wealth tax reforms, as some Labour politicians push for tax hikes in upcoming budgets.
(With inputs from agencies.)
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