Article
Comment
Politics
4 min read

Why governments need to Do God

A new review has a positive answer to the question should governments ‘do God’. Bex Chapman assesses the Bloom Review and its recommendations.

Bex is a freelance journalist and consultant who writes about culture, the church, and both government and governance.

Prime minister Rishi Sunak leans forward out a lounge chair while the Archbishop of Canterbury talks and gestures while sitting on a sofa.
The Prime Minister Rishi Sunak meets with the Archbishop of Canterbury Justin Welby in 10 Downing Street.
Number 10, CC BY 2.0, via Wikimedia Commons.

The former Downing Street spin doctor Alastair Campbell once notoriously interrupted a journalist interviewing his boss, the then-Prime Minister Tony Blair, to prevent him speaking about his faith, saying ‘We don’t do God’.   

But we know that many of our politicians do indeed ‘do God’; Gordon Brown was famously a son of the manse, who promised to lead a government with a ‘moral compass’. David Cameron declared that his Christianity existed, albeit that it ‘comes and goes’ like the Magic FM reception in the Chilterns, while Theresa May, also the child of a clergyman, described how her faith in God made her convinced she was ‘doing the right thing’ as Prime Minister.   

And Boris Johnson, originally baptised as a Roman Catholic as a baby, went Anglican while at Eton, and then re-crossed the Tiber to become Britain’s first Catholic Prime Minister. Before he left office, he commissioned an independent review to look at how the government should engage with faith groups. Four years later, based on conversations with over 20,000 people, ‘Does government do God?’ has been published. Has the government now admitted it does in fact do God? Or at least, that it would like to?   

The review is clear that faith makes a massive contribution to the life of our country. It examines the role of people of faith and places of worship in many areas of society - education, prisons and the probation service, the UK Armed Forces. It does not shy away from showing us that alongside those of real faith seeking to serve their communities there are those who abuse what they call ‘faith’ for their own ends; it looks at faith-based extremism, financial and social exploitation, and forced marriage. Review author Colin Bloom was clear that the issue of forced and coercive marriages should be a top priority for the government, calling it a ‘burning injustice’ that must not be consigned to what he called the government’s ‘too difficult box’.

Public servants currently receive training on the protected characteristics, but Bloom describes faith as ‘the Cinderella protected characteristic’. 

He recommends faith literacy in the public sector be improved as it is key to allowing the government to tackle these issues. Public servants currently receive training on the protected characteristics, but Bloom describes faith as ‘the Cinderella protected characteristic’. His report suggests that faith literacy is low across not just across the public sector, but across the country, including the media. Religious literacy training and a new Independent Faith Champion are just two of the 22 recommendations of the review, that go right across government, which government will consider and respond to in due course. At a briefing on the review, Bloom noted that there had been many previous reports with similar recommendations, but that these had not been followed through, adding ‘I just wish that either this Government, or whatever comes next, will be the Prince Charming that will take this Cinderella to the ball’.   

So why does government need to be more aware of, and more willing to engage with, people with faith? This report’s key message is that faith is an ‘overriding force for good’. One respondent told the review:  

‘Imagine if churches and other places of worship removed their time, money, creativity and energy from public life… What would happen to the army of volunteer chaplains in prisons, universities and hospitals?’.  

From over 21,000 responses, the majority of people who contributed to the review research were clear that faith and religion are beneficial for society. Over half of respondents gave faith and religion a 10 out of 10 rating for contribution to society, and over 84 per cent scored the social contribution as positive.   

The priest and psychologist Henri Nouwen spoke about how, for Christians, action is a grateful response that flows from our awareness of God’s presence in this world. Jesus’s whole ministry was a great act of thanksgiving to his heavenly Father. Nouwen observed that:  

‘Teresa of Avila built convents as if she would never get tired; Martin Luther King, Jr., preached, planned, and organized with an unquenchable zeal; and Mother Teresa of Calcutta is fearlessly hastening the coming of the Lord with her care for the poorest of the poor’.  

There are thousands of examples of how faith has motivated people to change the world around them for the better. The Bloom review cites the Mildmay Mission Hospital in London as just one example. Established as a Christian response to the cholera outbreak in the 1860s, it became one of the world’s leading centres in care for people living with HIV and AIDS and continues to be ‘an organisation that derives inspiration from its faith-based values’.   

Faith that changes lives is not just something from the past. The recent census showed us that there are still more people in the UK who have a faith than not. The religious landscape of the UK may have changed hugely since Alastair Campbell declared that ‘We don’t do God’. It is now far more diverse, arguably now even more exciting. Faith still makes a difference, changes lives, builds communities. Mr Bloom concludes that ‘without faith, places of worship and people of faith, this country would be poorer, blander, and less dynamic’. Faith, he says, is a force for good that government should do more to understand. The government should indeed do God. And this review and its recommendations suggest there is lots of room for improvement in just how they do it.

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.