Britain’s unearned wealth has ballooned – a modest capital tax could help avoid austerity and boost the economy

Canary Wharf in London. I Wei Huang/Shutterstock

Inheriting the worst set of public finances for decades, Labour was always going to face an uphill struggle trying to fund improvements to the UK’s public services.

Inflated debt and recent hikes in the cost of borrowing mean the government is faced with stark choices. For it will be difficult to meet the chancellor’s own tight fiscal rules without further tax rises or cuts in public spending.