Government policies since 2010 have increased inequality in the UK, to what extend do you agree? (Essay Sample)

University The Extent Government Policies Have Increased Inequality in the UK By Name of Student Course Date Tutor Inequality has emerged to be burning issue in the United Kingdom as a consequence of the implications of some government policies implemented in the last five years. According to Main (2016), the government introduced a policy of redefining poverty by eliminating all stuffs deprivation policies and earnings which were implemented in the Child Poverty Act (CPA) of the former labor government. The policy was measured dependent on educational achievement and jobless families, and as a matter of facts, this policy has only widened the inequality gap since the majority of kids in need reside in homes where no less than a single adult labors. Moreover, the policy does not take into account the insufficiency of proper labor accessible on the inferior side of the income distribution (Shaheen 2011). The regressive taxation strategy applied by the government is also another major cause of inequality. This kind of taxation operates in a manner that it is inversely proportionate; the individuals who are entitled to highest incomes pay less tax while the low earners pay more as their wages proportions, and as a result, the well-offs are the beneficiaries creating a wide gap between them and the rest at the bottom of the income distribution. The current UK standard rate for Value Added Tax is at twenty percent. This rate is constant and does not go up or down with regard to personal earnings, consequently, for instance, the Value Added tax at twenty percent on a leather sofa set costing five thousand sterling pounds has more effect on the salary of an individual earning ten thousand sterling pounds in relation to the one earning more than ten thousand sterling pounds. The recent government strategy to enhancing social mobility also doesn’t undertake wealth inequalities (Shaheen 2011). Moreover, Shaheen (2011) further claims that the emergent gap between the northern and southern parts of the UK is the result of deep-rooted trend especially deindustrialization. In spite of this particular shift, the recent government strategies inspiring business enterprise development are insufficient to untie the throttlehold of the economics division. The high rate of unemployment in the last four years to some extent can also be seen as a major impact to the increase of inequality. The conservative government policy of offering incentive for any company to construct an industry or set-up a factory has widened the unemployment margin between the rich and the poor which in turn increases the inequality. They are mainly acting to support the well-offs, for instance, the government can shut services and even close medical centres in area dominated by the poor thereby generating joblessness and promoting poor living standards, and at the same boosting the areas dominated by the well-offs financially and other empowerment resources consequently creating services. The current government has increased inequality through trade liberation strategies. It encourages the importation of cheap products manufactured by the inexpert labor force from other developing prosperous nations into the UK, which in turn leads to accumulation valueless commodities. This brings about lesser earnings for inexpert workforce in the nation, and also a decrease in the inexpert income with no equivalent decline of the expert income which automatically implies an inequality increase. The constant alterations in tax and the welfare benefit policies also constitute to the causes for the risen level of inequality specifically in the net earnings (Cribb 2013, p. 4). Cribb (2013) claims that prior to the Conservative regime in the late nineteen seventies, the highest income tax rate was eighty three percent on earned income and ninety eight percent on the unearned. The new government then moderated these top rates which openly enhanced net earnings, and amplified the personnel motivation for the individuals earning extremely high net incomes, which in turn increased the incredibly uppermost salaries all through the nineteen eighties. Nevertheless, from then on alterations in welfare policy and government taxes greatly lowered inequality. The Labor government also did their best to ensure reduction of inequality until 2007, but the current conservative government has implemented new tax and welfare policies which have greatly increased inequality. They are covering up welfare system statistics by transferring individuals to ambiguous and infinite benefits of disability from unemployment benefits. The government policies correlated with the Bank of England strategies to assist in recovering the UK’s economy also heavily deteriorated the inequality situation thereby widening the prosperity rift between the well-offs and the poor. The Quantitative easing together with the extremely little interest rates, hand-in-hand gave additional riches to wealthier individuals by supporting stock-markets and encouraging thriving home values and prices. Though the current government policies moderates the banks’ interest rates and Quantitative easing, there isn’t any research study claiming the inequality gap they initially widened while chasing other downfalls has to some extent reduced. Moreover, the Institute for Fiscal Studies (IFS), the UK’s to...