The UK spends more than anywhere else in Europe subsidising the cost of structural inequality in favour of the rich, according to an analysis of 23 OECD countries.
Inequalities of income, wealth and power cost the UK £106.2bn a year compared with the average developed country in the Organisation for Economic Co-operation and Development (OECD), according to the Equality Trust’s
cost of inequality report.
When compared with the top five most equal countries, however, inequality costs the UK £128.4bn a year in damage to the economy, communities and individuals.
Fixing the NHS crisis, including funding the maintenance backlog, hiring more staff and increasing wages, would cost about £66.7bn over 15 years.
“Inequality has made the UK more unhealthy, unhappy and unsafe than our more equal peers,” said Priya Sahni-Nicholas, the co-executive director of the trust.
“It is also causing huge damage to our economy: we have shorter healthy working lives, poorer education systems, more crime and less happy societies.”
Britain in the 1970s was one of the most equal of rich countries. Today, it is the second most unequal, after the US.
Sahni-Nicholas said: “There is a direct financial cost to inequality: the consequences of structuring society to allow for massive profiteering for the richest at the expense of the rest of us have been enormous.”
Overreliance on financial systems that allow for massive profits and wealth-hoarding has hollowed out our infrastructure, she added, encouraging massive regional disparities and leaving the UK vulnerable to shocks and recessions.
The report found that the richest 1% in the UK are the most expensive top 1% group in Europe, paying the lowest taxes of such a group in any large European country. The benefits of allowing this to continue are “almost impossible to defend”, said Danny Dorling, the author of
Inequality and the 1%.