Explainer
Comment
Economics
6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?
a pile of coins.
Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.  

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled. 

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.  

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue. 

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society? 

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play. 

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.  

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.  

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle. 

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here? 

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away. 

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.” 

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions. 

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans. 

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God. 

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system. 

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one. 

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society. 

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets. 

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.” 

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”. 

Nevertheless, he believes taxation can be used in this area to help level the playing field. 

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive). 

“You want to disincentivise the way the housing market is used for speculation,” he said. 

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.” 

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds. 

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.  

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives? 

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.  

But he adds an important caveat: “the playing field is not level. 

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.” 

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start. 

Article
Belief
Community
Creed
Football
Sport
7 min read

Liverpool's title win shows us that we’re built for community

Answering the question of who do we belong to.
Amid celebrating football fans, one stands on top of a kiosk with outstretched arms.
Liverpool fans celebrate outside their stadium.
Jonathan Rowlands.

“A Liverbird upon my chest 

We are men of Shankly’s best 

A team that plays the Liverpool way 

And wins the Championship in May” 

This is the song that has thundered around Anfield this season. A prophecy willed into existence amidst the departure of Jürgen Klopp, Liverpool’s Shankly for the twenty-first century. Surely not? 

But then.  

Arsenal drop points and Manchester City drop points and Liverpool don’t drop points. Again and again and again, until Liverpool needs just one more point to make the song a reality. The next game? Spurs at Anfield. At Anfield. As fate would have it, my wife and I had front-row tickets, thanks to my father- and mother-in-law booking a fortunately timed (for us, anyway) holiday and not being able to use their season ticket. (Thanks, Jeff and Janet). 

As we got to the stadium the place thrummed with anticipation. Liverpool is a city that loves to sing, and to dance, and to cuddle; a city built for joy and for love. And here is Liverpool in all its splendour, drenched in glorious, league-winning sunshine, as people sing and dance and cuddle. Most people here won’t have a ticket; Anfield only holds 60,000. People are here just to be here, to be present; around for when it happens. 

The game kicks off and the noise is deafening. Liverpool only needs to avoid defeat in the next ninety minutes and the league is theirs. Spurs, inconsistent all season, surely haven’t got the mettle to get anything from the game. Have they? 

But then.  

Spurs score. An unmarked header from a corner. As simple as it gets. Former Liverpool player Dom Solanke, no less. It was never going to be easy. 2025 marks the twentieth anniversary of the Miracle of Istanbul; if any club knows how to make a game of football difficult for themselves, it’s Liverpool. The ground turns from jubilant to tense. 

But then.  

Salah passes to Szoboszlai who passes to Diaz who scores. Three short passes and Spurs are carved open and all our wildest dreams have come true. 

But then.  

Flag’s up. Offside. No goal. Doesn’t count. Was it Szoboszlai or Diaz offside? Was it close? Doesn’t matter. The ground turns from jubilant to tense. 

But then.  

VAR – which I’ve always said was really good, actually, I promise – overturns the flag. Goal. Liverpool are level. The ground erupts. But there’s still work to do. While a draw would see Liverpool over the line, there’s a lot of football left to go before the ninety minutes is up  

And so Liverpool press and press and press and press. They hound Spurs, hassle them, harass them. Ryan Gravenberch has the ball on the edge of their box and is almost certainly fouled. The ref – who, to his credit, did his utmost to try and ensure a game of football didn’t break out because we wouldn’t possibly want that – decides otherwise. Nothing to see here. Play on.  

But then. 

Alexis Mac Allister picks up the loose ball, takes a touch, and thumps it – properly wallops it – right into the top corner. Anfield shakes and I’m being hugged by someone from somewhere unseen. Now is the time when it happens, when we win the thing we’ve waited so long to win. Being a football fan doesn’t get better than this. 

But then.  

It does. Liverpool have a corner. The ball comes in, Cody Gakpo collects, wriggles, turns, shoots, scores. No coming back for Spurs now. Bedlam. Pandemonium. Carnage. He runs to the corner nearest us, top off, a message on his vest underneath. Daylight.  

“What does his shirt say?” my wife asks. I strain, trying to see, but I can barely remember my own name at this point so I can hardly be expected to read now, can I? 

But then. 

There he is, just meters from us, walking back with his top still off, the message clear: 

I belong to Jesus 

There are two more goals in the second half and the game finishes 5-1 and Liverpool are champions. But honestly, it was all over bar the singing at half-time. And there was a lot of singing still to do. Each player worthy of their own song, the club’s past eulogised over in verse and chorus. And Liverpool’s past means they are no stranger to success. This league title means they are now indisputably, by any metric going, England’s most successful football club. (Hiya, Sir Alex, if you’re reading this). 

But the Premier League has remained oddly elusive: this is only the second time the club has won the competition since it formed in 1992 (although they had won eighteen top-flight titles prior to this; there was, I’m told, still football before the early 90s). And the last league win came at the start of lockdown.  

What’s the point of winning if I can’t be there to hug you and you and you and you?

Look: I celebrated that Covid League title; of course I did. But it felt odd, and the oddness has only increased as normality has gradually returned to life since the pandemic. My wife has a picture of me opening a bottle of champagne in our otherwise empty living room. The players life the trophy in an otherwise empty stadium. With hindsight, there’s an unavoidably melancholy tinge to the whole thing. You spend your life imagining what it’ll be like to win the Big Shiny Thing and then it happens when it’s illegal to leave your house (or something; lockdown is just a big blur to me at this point). 

But then.  

2025 rolls around and we get to do it again. Together. Even the ones who don’t have tickets are there. Everyone is there. Together. And all the while I can’t stop thinking about Cody Gakpo with his top off. I Belong to Jesus.  

Gakpo’s a weird footballer, truth be told. He’s unbelievably technically gifted, rapid, and yet somehow enormous, too. He’s scored hugely significant goals for Liverpool. And yet, he’s unlikely to be anyone’s favourite player. He lacks the unflappable brilliance of Rolls-Royce Centre Back Virgil Van Dijk, the sheer inevitability and perfection of Mo Salah, or even the outright gets-you-on-your-feet electricity of Luis Diaz. He's unlikely to be named Player of the Year or to have a statue outside Anfield when he retires. But there he is: 60,000 feral scousers wrapped around his finger, the eyes of the footballing world on him. And what’s his message to them? I belong to Jesus

I don’t know much about economics, but I’m told often that things are only worth what people are willing to pay for them. This is certainly true of footballers, anyway: one player might be worth significantly more to one club over another. But, in Christ, His infinitely valuable perfect Son, God declares that you and I are of infinite value. The One who’s judgement is perfect and faultless has decided you are worth the incalculable cost of His perfect and faultless Son. And so you are. It’s just a matter of simple economics.  

I forget this so often, that I am Jesus’ gift to Himself. I find it so hard to imagine myself as a gift. But there I am. I belong to Jesus. I didn’t know what to expect when we turned up to Anfield, but it certainly wasn’t a reminder of the worth Christ has placed on my very existence. But there I am. I belong to Jesus. And so does Cody Gakpo.  

The reason the Covid title feels so melancholy is that we couldn’t celebrate together. What’s the point of winning if I can’t be there to hug you and you and you and you? Liverpool’s League win, the euphoria that came with being able to share that win together with other people, gives us some slight sliver of a glimpse into the value Jesus Himself places in sharing His life with us. I reckon Cody Gakpo knows this, too. Because he knows he belongs to Jesus. He knows that he is the prize Jesus has won for himself. He is Jesus’ Premier League winning win at Anfield. Jesus wants to spend eternity with Cody Gakpo more than 60,000 feral scousers want to win the League. He wants to spend eternity with me and with you and with that person you find deeply annoying.  

It’s really easy for this all to sound saccharine and trite. “Ooh I went to a football match and it was like a big party in heaven, isn’t that nice?” But there is some truth to the glibness here. Football is better together because humans are made for togetherness. And this is seen no clearer than in Jesus’ desire to win togetherness with us, through his faithful and obedient life of sacrifice. 

As Cody Gakpo would say: I belong to Jesus. Or, as the Kop sang on repeat: Liverpool! Hallelujah, Hallelujah! 

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