Rolling coverage of the latest economic and financial news, as sterling hits €1.184 for the first time since May 2017
- Latest: Glencore faces bribery investigation
- Wealth inequality in UK has risen
- Introduction: Sterling is rallying today
- Polls suggest Conservative win next week
- Fears of a disorderly Brexit are fading
Shares in Glencore are on track to close at their lowest level since October 2016.
The Resolution Foundation think tank have now issued a report into UK wealth, based on this morning’s ONS data.
Called “Who owns all the pie?”, it shows clearly how wealth inequality has risen in recent years, as the wealthiest people have benefitted most from higher asset prices.
Fifty years ago, someone with a good salary could save enough over the course of their lives to retire with a good amount of wealth to live off. For many people today this is a distant dream: what matters more is the wealth you inherit or marry in to, rather than the income you can set aside over a working lifetime.
A middle income family on just over £26,000, for example, would have to save everything for 96 years if they were to reach the wealth of a household in the top 10 per cent of the wealth distribution (whose average wealth is £2.5 million). Even a family just inside the top tenth of the income distribution would have to save for 50 years, making it unrealistic that even the highest-paid can accumulate large amounts of wealth without windfalls from outside.