A comprehensive policy report collating 70 proposals from 15 left-wing thinkers has been published by the Compass thinktank, setting out an alternative agenda for the UK as the autumn budget approaches under chancellor John Healey. The document, titled Ending Business as Usual, was introduced by Michael Jacobs, a former adviser to Gordon Brown, and Neal Lawson, director of Compass. The report outlines far-reaching changes designed to fulfill the prime minister’s pledge to end 40 years of neoliberalism, though the authors caution that any incoming administration faces strict limits on its time to deliver tangible results.
Far-Reaching Tax Reforms and Wealth Redistribution
The report proposes a series of aggressive tax measures, including a wealth tax on net assets exceeding £10m. According to Caitlin Boswell from Tax Justice UK, this levy would generate approximately £24bn annually. Boswell argues that the Labour government must address structural inequalities driven by a tax system that favors wealth over work. Additional measures include equalizing capital gains tax with income tax, a move projected by the authors to raise £11.3bn a year—an amount they frame as sufficient to fund the construction of 90,000 new social homes.
However, these tax changes face sharp pushback from established economic institutions. The Institute for Fiscal Studies has warned that equalizing capital gains tax with income tax risks reducing total tax revenue and private investment, while potentially motivating wealthy individuals to relocate their assets or leave the country entirely. Furthermore, the report advocates replacing council tax and stamp duty—labeled as regressive and outdated—with a proportional property tax. According to the proposals, this shift would result in 23% of households, primarily concentrated in London and the south-east, facing higher tax bills.
Did You Know? The Compass report compiles exactly 70 distinct policy options sourced from 15 different left-wing thinkers, explicitly framed as a menu of policy options rather than a formal manifesto.
Social Care Overhaul and Public Infrastructure Plans
In addition to tax restructuring, the dossier targets major overhauls in social policy across England. Sebastian Rees from the Institute for Public Policy Research (IPPR) champions a model for free personal social care—covering vital needs such as washing, dressing, and eating—modeled on the system currently operating in Scotland. Under this proposal, accommodation and ordinary living costs would remain the responsibility of individuals and their families. To finance this, the report suggests a 1% surcharge on income tax rates for individuals aged over 40, which is estimated to raise between £8bn and £9bn. Care costs could alternatively be secured against a property and recovered after sale or death, allowing housing wealth to contribute without forcing immediate home sales.
The policy menu also advocates for universal free childcare to bolster the economy and promote gender equality, alongside institutional reforms like a £50,000 cap on political donations and the abolition of the House of Lords. In the energy sector, Chris Hayes of Common Wealth calls for government-owned companies to manage energy networks alongside the establishment of regional boards. Meanwhile, Holly Brazier Tope, director of politics at Green Alliance, urges the implementation of a climate resilience standard for critical infrastructure.
Economic Orthodoxy and Political Pressures
Michael Jacobs, professor of political economy at the University of Sheffield, contends that political leaders must actively resist the pressures of moderation and orthodoxy that he argues cut short the tenures of Keir Starmer and Rachel Reeves. Praising the prime minister’s aura of authenticity, Jacobs emphasizes that the public harbors deep disillusionment and anger toward politicians. Consequently, the government faces a narrow window to demonstrate that its promises to dismantle business as usual carry genuine substance.
Frequently Asked Questions
What is the primary aim of the Compass report?
The report aims to provide a menu of 70 policy options compiled from 15 left-wing thinkers to deliver on the prime minister’s promise to end 40 years of neoliberalism.
How much revenue would the proposed wealth tax generate?
According to Caitlin Boswell from Tax Justice UK, a wealth tax on net assets exceeding £10m would raise about £24bn a year.
What changes are proposed for personal social care in England?
The report suggests introducing free personal care for needs like washing, dressing, and eating, funded by a 1% income tax surcharge for people over 40 and contributions recovered from housing wealth after sale or death.
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