New IPPR report proposes a universal capital dividend

The Institute for Public Policy Research has published Our Common Wealth: A Citizens’ Wealth Fund for the UK:

A declining labour share of national income, together with unequal capital ownership, mean wealth inequality in the UK has risen and is set to rise further. A Citizens’ Wealth Fund, a type of sovereign wealth fund owned by and run in the interests of citizens, would help address this problem by transforming a part of national private and corporate wealth into shared net public wealth, and using the income to ensure everyone benefits from rising returns to capital.

A UK Citizens’ Wealth Fund could be worth £186 billion by 2029/30, if capitalised from 2020/21 using a mix of asset sales, capital transfers, new revenue streams, a small amount of borrowing and returns reinvested through the decade. This would be large enough to pay all 25-year-old UK-born citizens a one off capital dividend of £10,000 from 2030/31. The fund would be owned and run in the interests of citizens, but managed independently, within democratically-set ethical and social restrictions.

 

 

 

 

 

 

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