The wealthiest households in Scotland have on average £1.7 million in total wealth, while in comparison the least wealthy had just £7,600, a new report has revealed.
With the figures showing the wealthiest 2% of households have almost a fifth (18%) of wealth in Scotland, campaigners said the data highlighted “the vast scale of unfairness in Scotland today”.
The report looked at wealth in Scotland – which includes the physical wealth of households’ belongings, as well as savings and investment, property and pension wealth.
Scottish Government”>
The latest data, for the period 2018 to 2020, showed median household wealth in Scotland stood at £214,000 – with this down from £242,700 in 2016 to 2018 and £250,700 in 2014 to 2016.
The report, which was published by the Scottish Government, noted: “A typical household in the wealthiest 10% of households had £1.7 million in total wealth, whereas a typical household in the least wealthy 10% of households had £7,600.”
It added: “The least wealthy households rarely own property or have any private pension savings. Their wealth is mainly made up of the value of their possessions such as cars, furniture and clothing.”
The report also noted that wealth can “vary a lot by age”, saying that “younger households are less likely to have much or even any pension or property wealth, and most of their wealth is made up of the value of their belongings (physical wealth)”.
It added: “In general, people start building up wealth once they start receiving a salary, buy some goods, maybe save some money, and pay into a private pension scheme such as a workplace pension.
“Many buy a home, and through paying off their mortgage they build property wealth.”
Meanwhile when people retire, the report said that “pension wealth gets drawn upon and used up, while some people also downsize their homes and reduce their property wealth”.
However campaigners at Tax Justice Scotland – which wants Holyrood’s powers to be used to deliver greater equality – insisted changes are needed to “share wealth more fairly”.
Speaking on behalf of the group Scottish Trades Union Congress, general secretary Roz Foyer said: “These figures show the vast scale of unfairness in Scotland today.
“Whilst those at the top accumulate more wealth, more than one in five children grow up in poverty and our public services are starved of the investment they urgently need. This cannot go on.”
Ms Foyer demanded: “We need urgent tax reform to help share wealth more fairly and to distribute resources right across the country.
“Over time, public finance pressures mean that most of us may need to pay a bit more, but this data makes clear this must start with those at the very top.
“In Scotland, that means parties must set out clear plans to scrap Council Tax and replace it with a fairer, modern property tax.
“At the UK level, we also need common sense wealth taxes that ensure the richest pay their fair share.”
She insisted: “It’s time for our political leaders to step up with serious tax plans to help close this growing wealth gap and to invest in creating a fairer, more prosperous future for all of us.”
The Scottish Government has been contacted for comment.
