VAT on school fees (part 2)
inherited wealth from the nouveau riche prevent those climbing the economic hierarchy from reaching the top of the social hierarchy through class prejudice. 11
The imposition of VAT on school fees also may have limited impact, as the complexity of socio-economic mobility transcends social, economic and political boundaries. Implementing VAT based on turnover could be fairer, reducing disparities between private schools while raising funds by taxing the elite who concentrate in those top institutions. Moreover, gradually phasing in the tax will reduce fee shocks on the middle class, and closing VAT loopholes prevents the elite schools from financially benefiting. More generally, there is a strong negative correlation between income inequality and intergenerational social mobility (see ‘The Great Gatsby Curve’). The Gini coefficient, which measures statistical dispersion representing income inequality, sees Norway placed 6 th out of the OECD nations with a Gini coefficient of 26.2, while the UK is 25 th with a coefficient of 35.4, just 6 places from the bottom of the list. 12 More equal societies tend to be more socially mobile, and thus income equality should be a major goal for the UK government. In Doughnut Economics , Kate Raworth discusses the idea of distributive economies, where wealth-generating resources are distributed, using the commons as a community resource for sharing knowledge and digital wealth as a public good. These approaches would help to reduce inequality within the UK. Moreover, compressing the wage structure would further improve disparities and improve economic fairness. Wagemark, a voluntary wage certification standard set up in Canada in 2013, ensures the ratio of total compensation of the highest-paid employee to that of the lowest-paid full-time employee must not exceed 8:1: this could be easily implemented into UK economic policy. Finally, ensuring a strong welfare state ensures the population is protected against poverty and protected from dropping down the socio-economic ladder. While a universal basic income has not yet been implemented formally anywhere in the world, a two-year study in Finland showed marked increases in life satisfaction, as well as in mental and physical health. 13
Aside from educational inequalities, the government should broaden their view, recognizing mobility as a systemic challenge encompassing wider socio-economic issues. Creating an economy which focuses on distributing wealth evenly will be crucial in improving Britain’s socio-economic future.
11 French sociologist Pierre Bourdieu coined the term ‘symbolic violence’ to describe these actions undertaken to maintain exclusive elitism; see Distinction: a social critique of the judgement of taste (Routledge, 2010). 12 ‘List of countries by income inequality’, Wikipedia (2025) at https://en.wikipedia.org/wiki/List_of_countries_by_income_inequality. 13 ‘Finland sees promising results after nationwide experiment with universal basic income’, McKinsey & Company (2020) at https://www.mckinsey.com/featured-insights/sustainable-inclusive-growth/charts/finland-sees-promising-results- after-nationwide-experiment-with-universal-basic-income.
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