Jeremy Corbyn has said that a cap on wages is required to address the inequality within British society.
Speaking on BBC Radio 4’s Today Programme on Tuesday, the Labour leader sad radical reform was needed to make the UK a fairer for all and he would “like there to be some kind of high earnings cap”.
When pressed for more details on how such a cap would work, he replied:
“I can’t put a figure on it and I don’t want to at the moment. The point I’m trying to make is that we have the worst levels of income disparity of most of the OECD countries.
“It is getting worse. And corporate taxation is a part of it. If we want to live in a more egalitarian society, and fund our public services, we cannot go on creating worse levels of inequality.”
Later discussing on Sky News about the idea, Corbyn said he expected the cap to be “somewhat higher” than the £138,000 a year he earns as leader of the opposition, but called footballer salaries “simply ridiculous” and asked “Why would someone need to earn more than £50m a year?”
The plan has been widely derided by commentators who have variously described it as an unworkable ‘dampener on inspiration’ that would hit tax receipts but not affect the main source of wealth, which is capital rather than income.
On Twitter, Financial Times correspondent Brian Groom said:
Problems with Corbyn wage cap: most wealth not from wages; hits tax revenues; damps aspiration. Any more?
— Brian Groom (@GroomB) January 10, 2017
Others noted that while a fixed figure for a cap on wages may be unworkable, maintaining a ratio between the lowest and highest paid within a company, from bosses to cleaners, may be more effective in addressing inequality.
Daily Mirror associate editor Kevin Maguire said:
As I made clear back in 2009, set the maximum wage within companies with a ratio of 10-1 over a firm's minimum. Fair, workable & popular
— Kevin Maguire (@Kevin_Maguire) January 10, 2017
However, while the plan may never be implemented, it shows that Corbyn shares the anger of a large part of the British public about inequality, and may be the first step in rebranding the Labour leader as a populist.
ITV reporter Carl Dinnen noted:
The idea of a maximum wage cap may be completely unworkable but there may still be plenty of voters who like JC for wanting one. 1/2
— Carl Dinnen (@carldinnen) January 10, 2017
A majority of voters didn't think Ed Miliband could make his Energy Price Cap work but they liked him for wanting it. 2/2
— Carl Dinnen (@carldinnen) January 10, 2017
