Tuesday 6 August 2019 / 12:02 AM Business / Economy / John McDonnell

ISF research on top 1% in London and the South East – McDonnell responds

John McDonnell MP, Labour’s Shadow Chancellor, commenting on IFS research showing the concentration of the top 1% in London and the South East, said:

“A massive proportion of the top 1% live in London and the South East, and it’s yet another sign of how Tory governments have encouraged the super-rich to concentrate in those regions while the rest of the country is held back.

“It’s shocking that so many of the top 1% are getting tax advantages, as partners and business owners, and we’re going to get more help for the very wealthiest from this Boris Johnson-led government of bankers.

“A Labour government will be for the many, not the few – and will tackle regional inequality, introduce a fairer taxation system, and clamp down on tax advantages exploited by the super-rich.”

Ends

 

Notes to editors

  • New IFS research on the top 1% is available here: https://www.ifs.org.uk/publications/14303.
  • Those in London and the South East account for a quarter of taxpayers but make up three-fifths of the top 1% (p. 11). 35% of the top 1% live in London today, up from 29% in 2000-01 (p. 11). The top 1% receives around 14% of national income (p. 3), a proportion which increased significantly in the 1980s, and rose further in the 1990s and most of the 2000s.
  • Half of the top 0.1% lives in London (p. 13).
  • Almost one in five of the top 1% are in partnership, receiving tax advantages; the IFS suggests that almost one in three of the top 1% is a business owner (p. 14).
  • The IFS has said: “The top 1% of income tax payers are geographically very concentrated.” (p. 22)