Blair Hints At 'Wealth Redistribution' Through Higher Taxes

by Caroline Maxwell, Tax-News.com, London

19 September 2002

Prime Minister, Tony Blair yesterday announced the government's intention to 'continue to redistribute power, wealth, and opportunity to combat poverty and social exclusion and to deliver public services that people can trust', sparking fears that new tax hikes may be on the cards in the United Kingdom.

Speaking as the Department for Work and Pensions published its annual poverty report, Mr Blair returned to the domestic arena with a promise to eradicate child poverty within a decade. However, the use of the phrase 'wealth redistribution' has raised the hackles of some commentators.

The Times observed on Wednesday that: ''Redistribution', one of the guiding principles of socialism, has been a word rarely used in the Labour high command in recent years, as the party has established its reputation for sound economic management.'

The newspaper continued: 'Redistribution has always been seen as an 'old Labour' aspiration. The Prime Minister's readiness to use it may be significant as it suggests that he is more receptive to the idea of raising taxes to achieve social change.'

However, an unnamed government source sought yesterday to reassure twitchy taxpayers, explaining that: 'This is not a change of policy. We have been open and honest about putting up taxes to pay for improvements in the public services.'

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