OECD: tax more to cut inequality

Inequality in the UK rose more quickly than in any other member country of the Organisation for Economic Cooperation and Development (OECD) from 1975 to the present day, the group revealed in a report published yesterday. The highest-earning 10 per cent earn an average of 12 times more than the lowest ten per cent, according to the research, up from eight times more in 1980. The increasing proportion compares with an OECD average of eight times, and a peak of 24 time in Mexico and Chile. Income inequality has risen in the majority of OECD nations, the report said, largely driven by wages rising more quickly at the top end of the spectrum than at the bottom. The group claims this means the UK needs to create more jobs, and consider taxing the rich and giving more to the poor.