Fri. Nov 27th, 2020

Pound hits 31-month high against the euro on Tory win predictions – business live

Rolling coverage of the latest economic and financial news

12.26pm GMT

Torsten Bell of the Resolution Foundation has tweeted about the rise in UK wealth, and wealth inequality:

Incomes aren’t going up much – but wealth is. New data has it rising by 13% over the two years to 2016-18.

House and pensions are driving the wealth increase BUT it’s financial wealth (ie shares/savings) that has actually seen the fastest growth. That matters because financial wealth is the most unequal form of wealth

Wealth inequality is up.
Under the bonnet the trend of housing wealth becoming more unequal and pension wealth becoming more equal continues. You can thank lower home ownership for the former and pension auto-enrolment for the latter.

This long term trend of wealth rising faster than incomes deserves much more focus – forget which party is promising you a tax cut/extra teachers today, this trend is reshaping Britain

The wealth surge means it now totals over seven times our national income – that’s why it’s playing a bigger role in determining who the country does, and doesn’t, work for

12.26pm GMT

There is also a remarkable divergence in wealth growth across the UK in the last decade.

London has seen a huge jump in wealth, but the North East and the East Midlands have both suffered falling wealth.

For London, median total wealth has increased in each of the survey periods since July 2006 to June 2008. Between July 2006 to June 2008 and April 2016 to March 2018, median total wealth in London has increased by 78% to £356,400. Changes in net property and pension wealth are the major factors driving changes to total wealth.

For London, median net property wealth has increased by 51% since July 2006 to June 2008, to £410,000 in April 2016 to March 2018. Pension wealth has increased by 47% to £102,200.

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