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Rich- poor gap 'smaller than it was ten years ago'The gap between rich and poor across the UK is lower now than a decade ago despite claims that the Tories have worsened inequality, a major report reveals today. The research also found that inequality in London in particular has fallen dramatically since the late 2. The report undermines Labour claims that the poorest have been hit hardest because of government policies including spending cuts. The figures are starkly at odds with the Left- wing argument that Britain is one of the most economically divided nations in the world.

According to the respected Institute for Fiscal Studies (IFS), income inequality across Britain fell sharply after the Great Recession at the end of the 2. The research also found that inequality in London in particular has fallen dramatically since the late 2. Instead, researchers found evidence the top one per cent of earners had ‘done worse’ in recent years than those on middle incomes.

The incomes of the top one per cent are around ten per cent below their pre- recession levels - compared to a five per cent fall among the average earner. The IFS measured income as the amount that people had to spend after deducting income tax, National Insurance and council tax. It includes the income that some get from state benefits and tax credits. Showtime Full Rush Hour 2 Online Free on this page. According to the IFS, the sharpest reductions in the gap between rich and poor were in London.

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Since the end of the last decade, the incomes of the poorest ten per cent of earners in the capital have risen by more than ten per cent. By contrast, the incomes of the top ten per cent of households have fallen by more than ten per cent. The IFS pointed to ‘strong growth in employment’ in the capital – up five per cent since 2.

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Household incomes have also been ‘supported’ by Conservative tax cuts, including increases in the personal allowance. In 2. 01. 0 single earners started paying income tax after earning £6,4. Across the country, incomes of the bottom ten per cent have grown by nearly eight per cent and average earnings by four per cent since 2. The incomes of the top ten per cent fell slightly. Jeremy Corbyn has called for a maximum wage law to reduce inequality in the UKAnalysis of regional differences showed average incomes in the South East of England are 2. West Midlands, the poorest region by this measure.‘London remains the most unequal part of the country, inequality in the capital has seen a dramatic decline over the last decade’. Robert Joyce, an Associate Director at IFS and another author of the report, said: ‘Although the post- recession years have seen modest income growth, with little change in poverty rates and inequality, many people have seen large changes in their incomes.‘Fluctuating incomes mean that many fewer people are classed as persistently poor than have a low income at any point in time.’It follows a report by the World Bank which found wealth is shared more fairly in Britain than most other Western nations.

Income inequality in the UK is less marked than in nations including France, Australia and Italy, it found. Britain was 3. 9th out of 1.

Jeremy Corbyn has called for a maximum wage law to reduce inequality in the UK. In January, the Labour leader said: ‘We have the worst levels of income disparity of most of the OECD countries. It is getting worse.‘And corporate taxation is a part of it. If we want to live in a more egalitarian society and fund our public services, we cannot go on creating worse levels of inequality.’.