Fair exchange

The principle in detail

A fair society requires fair exchange, the idea of reciprocity. Britain’s broken social contract means that hard work no longer guarantees a decent quality of life. This makes it even more important that the state can support people when they need it. Everyone receives state support at some time in their lives, even if some need more than others (for example due to disability) and others opt for private provision. Public services and social security depend on spending funded by taxation, and we need a fairer and more effective tax system in which every contributes their fair share. This requires us to ask more of the wealthy as well as ensuring that tax owed is paid and that public spending delivers real value for taxpayers.

Where we are today

Today in Britain, the richest 10% enjoy 18.5 more years of healthy life than the poorest 10%, 15% of occupied homes are not classified as ‘decent’, and some earning £10m pay the same tax rate as people on £30,000.

What the public think

69% of Britons are concerned about health inequalities, 77% think government should guarantee access to decent housing for all, and 65% support equalising tax rates on income from wealth with income from work.

What to do about it

Policy solutions to the absence of fair exchange in the UK include investing more in public services and social security, properly taxing income from wealth, improving tax collection and reviewing the tax code.