Why are levels of philanthropy in the UK so low?

Hazel Blears (left) made a good point when she called for the government to do more to encourage philanthropy. But what, exactly, can be done? asks Simon Nixon.

Here are two words I never expected to use in this column: "Hazel Blears". But there is no escaping the fact the Labour party chairwoman said something interesting last week. While her rivals for Labour's deputy leadership have been playing to the gallery with familiar calls to soak the rich, Blears was calling for the Government to do more to encourage philanthropy. "I know many [wealthy people] would like to do more to help poorer people and poorer communities and we should make it more attractive for them to do that. That is much better than wagging a finger about how much they earn."

Blears is tapping into a growing current of opinion that those who've made huge fortunes over the last decade as a result of globalisation and deregulation of financial services should put some of their money back into society. Of course, for Labour politicians like Blears, their motivation is obvious. The Government is strapped for cash and desperate to coerce wealthy people into coughing up a sort of voluntary tax. Labour politicians are also embarrassed by the wealth gap in Britain, with inequality rising on their watch.

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Simon Nixon

Simon is the chief leader writer and columnist at The Times and previous to that, he was at The Wall Street Journal for 9 years as the chief European commentator. Simon also wrote for Reuters Breakingviews as the Executive Editor earlier in his career. Simon covers personal finance topics such as property, the economy and other areas for example stockmarkets and funds.