Middle class ‘may be susceptible to more debt’

Middle Britain homeowners may find themselves more susceptible to falling further into debt if plans for rises in council and capital gains taxes come to fruition.

These increases are currently being pushed forward by Labour’s deputy leader Harriet Harman, This Is Money reports, in a bid to reduce inequalities in income.

A report, which was commissioned by the MP and is to be published in January, has concluded that imbalances in wealth have worsened under the Labour government, reducing social mobility.

It is expected that Ms Harman will use these findings to further her agenda regarding the redistribution of income.

Former minister Tom Harris was quoted by the news source as saying: “There is nothing intrinsically good or moral in taxing for its own sake.”

Last month, it was suggested by insurance group Aviva that the Financial Services Authority’s Retail Distribution Review could disadvantage the middle classes if they are implemented as it may become harder for them to access financial advice.

By Sarah Adie