A crisis of trust in our politics spells trouble for the government

Published

1 year ago

April 25, 2024

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The morning after the 2019 general election, Boris Johnson pledged to people in the North East who had voted Conservative for the first time that he and the party would “repay your trust”.

That year was the Brexit election, and the Conservatives ultimately won because they and Mr Johnson were trusted to “get Brexit done” – Jeremy Corbyn was not.

Five years on, exclusive polling by YouGov for Sky News finds that since then, the number of people saying they “almost never” trust the British government to place the needs of the nation above the interests of their own party has nearly doubled – from 26% to 49%.

This spiralling level of distrust has been greatest for the bedrock of the Conservative’s electoral coalition – those who voted to leave the EU in 2016.

The percentage of Leavers saying they “almost never” trust government has leapt by 33 points (from 23% to 56%) since the last election – twice as much as the increase for Remainers.

It is the sort of people who live in places like Grimsby and Cleethorpes, which voted heavily to Leave the EU – by nearly 70% – who have lost most trust in British politics since 2019.

A disconnected politics

Our polling reveals a deep loss of public faith in British politics since the last election.

This is all the more remarkable given the “rally” in public trust enjoyed by the government at the height of the pandemic.

Nearly three-quarters of voters believe politicians don’t care what people like them think – this has risen from 51% to 73% over the past five years.

There has been a similar rise in the number of people who feel politicians in Westminster ignore the issues they care about – up from 50% to 67%.

A geography of discontent

Despite Mr Johnson’s pledge to repay the trust of new Conservative voters in the North, and promises of “levelling up”, there is a widespread view outside London that politicians in Westminster don’t care very much or at all about their part of the country.

The percentage of people saying politicians don’t care “at all” about their region is highest in Wales at 47% and the north of England at 39%.

This feeling is higher among Leave voters – 42% – than Remain voters -24%.

Five years of Conservative government has not delivered the legacy of trust hoped for by Mr Johnson.

‘They are all the same’

Perhaps most telling of all, the public currently see the parties as more like each other than at any election since 1964 – when polling records began.

Voters are more likely than ever before at 40% to say there is not much difference between Labour and the Conservatives, and less likely than ever to say there is “a great deal of difference” between them at just 12%.

This contrasts with 2019 when 47% of people said there was a great deal of difference between the parties.

Trust is about delivering on promises

Our research has found that across the world, one of the most important things needed for voters to consider politicians to be trustworthy is that they stick to their word and do what they say – so we asked whether the parties try to keep their promises.

Some 71% of people think the Conservative Party do not try to keep their promises, notably including 61% of 2019 Conservative voters.

Views on Labour are more mixed, with 47% of people saying they don’t try to keep their promises and 27% saying they do.

For the government, this deep public antipathy spells trouble for the next election.

In many parts of the country, voters feel politicians don’t care what they think or care about their area, ignore the issues that matter to them, and don’t offer a meaningful choice at the ballot box.

If Labour does benefit from a prevailing mood of public distrust at that election, its honeymoon may not last long as it will soon face the same winds of discontent.

Politics

US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

Published

4 hours ago

July 9, 2025

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US CLARITY bill could allow Tesla and Meta to evade SEC rules — Senator Warren

The legislation to establish crypto market structure is one of three bills the US House of Representatives is expected to consider starting next week.

Politics

What is a wealth tax, how would it work in the UK and where else has one?

Published

5 hours ago

July 9, 2025

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What is a wealth tax, how would it work in the UK and where else has one?

The idea of a wealth tax has raised its head – yet again – as the government attempts to balance its books.

Downing Street refused to rule out a wealth tax after former Labour leader Lord Kinnock told Sky News he thinks the government should introduce one.

Sir Keir Starmer’s spokesman said: “The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

While there has never been a wealth tax in the UK, the notion was raised under Rishi Sunak after the COVID years – and rejected – and both Harold Wilson’s and James Callaghan’s Labour governments in the 1970s seriously considered implementing one.

Sky News looks at what a wealth tax is, how it could work in the UK, and which countries already have one.

What is a wealth tax?

A wealth tax is aimed at reducing economic inequality to redistribute wealth and to raise revenue.

It is a direct levy on all, or most of, an individual’s, household’s or business’s total net wealth, rather than their income.

The tax typically includes the total market value of assets, including savings, investments, property and other forms of wealth – minus a person’s debts.

Unlike capital gains tax, which is paid when an asset is sold at a profit, a wealth tax is normally an annual charge based on the value of assets owned, even if they are not sold.

A one-off wealth tax, often used after major crises, could also be an option to raise a substantial amount of revenue in one go.

How could it work in the UK?

Advocates of a UK wealth tax, including Lord Kinnock, have proposed an annual 2% tax on wealth above £10m.

Wealth tax campaign group Tax Justice UK has calculated this would affect about 20,000 people – fewer than 0.04% of the population – and raise £24bn a year.

Because of how few people would pay it, Tax Justice says that would make it easy for HMRC to collect the tax.

The group proposes people self-declare asset values, backed up by a compliance team at HMRC who could have a register of assets.

Which countries have or have had a wealth tax?

In 1990, 12 OECD (Organisation for Economic Co-operation and Development) countries had a net wealth tax, but just four have one now: Colombia, Norway, Spain and Switzerland.

France and Italy levy wealth taxes on selected assets.

Colombia

Since 2023, residents in the South American country are subject to tax on their worldwide wealth, but can exclude the value of their household up to 509m pesos (£92,500).

The tax is progressive, ranging from a 0.5% rate to 1.5% for the most wealthy until next year, then 1% for the wealthiest from 2027.

Norway

There is a 0.525% municipal wealth tax for individuals with net wealth exceeding 1.7m kroner (about £125,000) or 3.52m kroner (£256,000) for spouses.

Norway also has a state wealth tax of 0.475% based on assets exceeding a net capital tax basis of 1.7m kroner (£125,000) or 3.52m kroner (£256,000) for spouses, and 0.575% for net wealth in excess of 20.7m kroner (£1.5m).

The maximum combined wealth tax rate is 1.1%.

The Norwegian Labour coalition government also increased dividend tax to 20% in 2023, and with the wealth tax, it prompted about 80 affluent business owners, with an estimated net worth of £40bn, to leave Norway.

Spain

Residents in Spain have to pay a progressive wealth tax on worldwide assets, with a €700,000 (£600,000) tax free allowance per person in most areas and homes up to €300,000 (£250,000) tax exempt.

The progressive rate goes from 0.2% for taxable income for assets of €167,129 (£144,000) up to 3.5% for taxable income of €10.6m (£9.146m) and above.

It has been reported that more than 12,000 multimillionaires have left Spain since the government introduced the higher levy at the end of 2022.

Switzerland

All of the country’s cantons (districts) have a net wealth tax based on a person’s taxable net worth – different to total net worth.

It takes into account the balance of an individual’s worldwide gross assets, including bank account balances, bonds, shares, life insurances, cars, boats, properties, paintings, jewellery – minus debts.

Switzerland also works on a progressive rate, ranging from 0.3% to 0.5%, with a relatively low starting point at which people are taxed on their wealth, such as 50,000 CHF (£46,200) in several cantons.

Politics

Jingye and Whitehall officials hold talks over British Steel future

Published

8 hours ago

July 9, 2025

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Jingye and Whitehall officials hold talks over British Steel future

The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.

Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.

Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.

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Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.

Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.

Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.

British Steel has not yet been formally nationalised, although that remains a probable outcome.

Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.

Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.

Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.

News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.

Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.

Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.

“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”