A group of over 15 influential thinkers has presented a comprehensive report to Prime Minister Andy Burnham, urging his government to tackle UK inequality through a series of radical policy shifts. The document, titled “Ending Business as Usual,” was compiled by the Compass thinktank and offers 70 distinct policy options intended to fulfill the Prime Minister’s pledge to move beyond 40 years of neoliberal economic policy.
Michael Jacobs, a professor of political economy at the University of Sheffield and former adviser to Gordon Brown, co-introduced the report alongside Compass director Neal Lawson. While they praised the Prime Minister for possessing an “invaluable aura of authenticity,” they cautioned that he faces significant pressure to deliver results quickly. They warned that there is no guarantee Burnham will be granted more time to succeed than his immediate predecessor, emphasizing that it is false to claim a British government cannot effectively govern from the left of center.
The report serves as a menu of options rather than a formal manifesto. Among its most prominent proposals is the introduction of a wealth tax on net assets exceeding £10 million, which Tax Justice UK’s Caitlin Boswell estimates could generate approximately £24 billion annually. Boswell argued that if the government intends to restore public confidence, it must address the structural imbalance of a tax system that prioritizes wealth over labor.
Additional tax-related recommendations include aligning capital gains tax with income tax rates, a move projected to raise £11.3 billion annually—funds the authors suggest could support the construction of 90,000 social homes. However, this proposal faces skepticism from the Institute for Fiscal Studies, which warned that such changes could dampen investment and potentially lead wealthy taxpayers to relocate abroad. The report further advocates for replacing council tax and stamp duty with a proportional property tax, noting that while this would be fairer, it would increase the tax burden for 23% of households, primarily in London and the south-east.
Social policy reforms feature heavily in the document, specifically a call for universal free personal social care. Sebastian Rees of the Institute for Public Policy Research proposed funding this through a 1% income tax surcharge for individuals over 40, which could raise between £8 billion and £9 billion. The plan suggests that care costs could be secured against property and recovered following a sale or death, allowing housing wealth to contribute to reform without forcing individuals to sell their homes prematurely. The report also calls for universal free childcare to promote gender equality and support economic growth.
Infrastructure and governance are also addressed, with calls for the state to bring gas and electricity networks under public ownership. Chris Hayes of Common Wealth suggested establishing government-owned companies to manage energy networks, supplemented by regional energy boards. Meanwhile, Holly Brazier Tope of the Green Alliance proposed implementing a climate resilience standard for critical infrastructure. Other radical measures mentioned include a £50,000 cap on political donations, an immediate cost-of-living support package, and the abolition of the House of Lords.
As Chancellor John Healey prepares for his first budget this autumn, Jacobs urged the government to resist the “moderation and orthodoxy” that he believes contributed to the political downfall of Keir Starmer and Rachel Reeves. He noted that the public is increasingly disillusioned and angry, leaving the current administration with a narrow window to prove that their commitment to ending business as usual is genuine. “There are a wealth of alternatives,” Jacobs concluded. The report also notes that the authors argue that it is “simply not the case that a British government can no longer govern from the left of centre”. The report also notes that outdated and unfair” council tax as well as stamp duty to be replaced with a proportional property tax, noting such a move would result in 23% of households – concentrated in London and the south-east – paying more, the essay also calls for what it describes as the “regressive. The report also notes that “If the new Labour government is serious about rebuilding public confidence and delivering material improvements to people’s lives, it must be prepared to address one of the structural causes of inequality: a tax system that favours wealth over work,” writes Boswell. The report also notes that when he says he wants to end business as usual, he means it.”, he does not have long to prove to voters that.
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