Weekend essay

Comment

Royalty

6 May 2023

4 min read

Beyond Charles: a radical case for the monarchy

In a culture that tends toward populism and moral relativism, what the coronation says is, ironically, radically prophetic, writes Nigel Biggar.

Nigel Biggar

Nigel Biggar is Regius Professor Emeritus of Moral Theology at the University of Oxford and Distinguished Scholar in Residence at Pusey House, Oxford.

A uniformed Prince Charles sits on a throne reading a speech, beside a crown resting on a cushion

In May 2022, the then Prince Charles delivers a speech in the House of Lords.

Judging by a recent YouGov poll, the monarchy currently remains popular among the British, with 58 per cent supporting its continuation and only 26 per cent preferring an elected head of state. But support drops dramatically with age: 38 per cent of those aged 18-24 would like to abolish the monarchy, while only 32 per cent want to keep it.

If the monarchy is to survive beyond the reign of King Charles III, therefore, a strong case in its favour needs to be articulated. It needs to be justified in terms of political well-being. Can this be done? I believe so. Monarchy as we now have it—with its executive powers entirely transferred to elected members of parliament (except in case of constitutional crisis)—makes important contributions to political health. For sure, most of these are symbolic; but symbols can represent important truths and serve important functions.

First, by embodying a reassuring continuity and stability, monarchy enables society to cope with change. Thus, far from fostering conservatism during her seventy-year reign, the late Queen Elizabeth actually presided over huge cultural, social, and political change.

Thanks to their monarchy, the British are spared the predicament of those Americans who loathed the politics of Donald Trump, while having to respect him as the symbolic representation of their nation.

Second, the distinction between the monarchical head of state and the prime ministerial head of government makes it easier to tell criticism of government policy from a lack of patriotic loyalty—easier than in an American presidential system, where the symbolic head of the nation and the head of government are one and the same. Thanks to their monarchy, the British are spared the predicament of those Americans who loathed the politics of Donald Trump, while having to respect him as the symbolic representation of their nation.

Next, it’s good to have a head of state who, being unelected, can transcend party-politics and use her patronage to support civil society, thus reminding us (and politicians) that there is far more to public life than elections, parliamentary debates, and legislation.

But there is yet a further benefit, which is more principled, more Christian, and more fundamentally important than any of the others. A good political constitution certainly needs a part where rulers are made sensitive and accountable to those they rule—that is, an elected legislature that can hold government to account and stop it in its tracks. A good constitution needs a democratic element. After all, according to a biblical and Christian view, rulers exist to serve the ruled: kings are expected to be shepherds of their people.

Nevertheless, a Christian view is not naïve about the people. It does not suppose that the popular will, as expressed in majority vote, is always right and just. After all, it was the people (the laos as in ‘laity’) who bayed for Jesus’ blood in the Gospels, and it was the people (the demos as in ‘democracy’) which, according to the Acts of the Apostles, responded to the Christian persecutor, Herod, by lauding him as a god (Acts 12.21). If kings can be sinners, then so can the people. Hitler, remember, was elected by due democratic process.

What this means is that a healthy political constitution should be more than simply democratic. In addition to an elected House of Commons, it needs other parts too, to balance it. It needs to be mixed. For example, it needs a House of Lords composed of a wide range of experts and leaders of civil society (including the Church of England). That is, it needs an aristocracy of wisdom, not of land, which can only be secured by appointment, not popular election.

The heir to the throne gets on his knees to receive the crown—the symbol of his authority—not from below but from above, not from the fickle people but from the constant God.

And it also needs a monarch, who symbolises the accountability of the whole nation, rulers and ruled, kings and people, to the given principles of justice. At base these principles are not human inventions. They are not the passing creatures of popular whim or majority vote. They are given in and with the created nature of things. And this is exactly what the coronation ritual says, when the heir to the throne gets on his knees to receive the crown—the symbol of his authority—not from below but from above, not from the fickle people but from the constant God.

Contrary to what now passes for democratic common sense, the moral legitimacy of government does not lie in popular consent. It cannot, since the will of the people can be corrupt. Rather, moral legitimacy lies in the conformity of law and policy to the given principles of justice and prudence—to which the people might or might not adhere. Popular consent is vital, if law and government policy is to have any effective social authority, but it does not establish its moral legitimacy. This is a very important and fundamental political truth, which is rarely spoken nowadays, but which the coronation ritual speaks. And in a culture that tends toward populism and moral relativism, what the coronation says is, ironically, radically prophetic.

In sum, then, I do think that there are good reasons—some of them directly Christian—to support the kind of monarchy we now have. However, on the question of how much public money should be used to support it, or how many members of the royal family should be supported, I am agnostic. And I don’t suppose that a monarchical republic is the only decent kind of republic. Nonetheless, I do think that monarchy can confer some important and distinctive political benefits; and if we are to continue to enjoy them—if Prince George is to find a throne awaiting him—then we had better bring to mind what they are.

Explainer

Comment

Economics

29 October 2024

6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?

Laurence Fletcher

Laurence Fletcher is a journalist at the Financial Times.

Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled.

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue.

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society?

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play.

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle.

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here?

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions.

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans.

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God.

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system.

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one.

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society.

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets.

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.”

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”.

Nevertheless, he believes taxation can be used in this area to help level the playing field.

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive).

“You want to disincentivise the way the housing market is used for speculation,” he said.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds.

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives?

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.

But he adds an important caveat: “the playing field is not level.

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.”

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start.