According to new research, people in the UK are expecting to pay back the Covid debt for the next 35 years. 43% of taxpayers say the most likely group to take on the debt burden will be today’s 18-30s.
The CEO of one of the UK’s leading independent financial advisory firms has called on big corporations and the government to come up with financial aid and groundbreaking ideas to ease the burden on the younger generation and fuel economic recovery.
Neil Moles, CEO of progeny, said: “Some companies, like the big global online retailers, have done very well during the pandemic. They play a role in job creation and opportunity in particular, especially as many would say they don’t pay their fair share of taxes – and the government’s answer can’t just be taxes, taxes and more taxes. I would like the government to incentivize high quality opportunities for young people. ”
In response to the survey, 78% of 18-34 year olds said they were more cautious about their finances because of Covid-19. A third (33%) of 18-34 year olds believe they will work much longer as a result of the pandemic, and 41% believe they are financially worse off.
Progeny’s new study shows that since the first national lockdown almost a year ago, the economic impact of the pandemic has seen more than a third of Britons suffer a financial blow.
While COVID-19 has had a short-term impact on finances, many have long-term concerns about their financial security. The survey found that due to the pandemic, adults believe they will have to work two more years before retiring.
Neil continues, “The COVID-19 debt is now over £ 355 billion and as the Chancellor himself suggested this could be a bill we will pay for decades into the future. The government has already set out its first plans to pay back the deficit through taxes, but we need to go beyond talking about increasing existing taxes or introducing new taxes. “Our survey found that people believe that the youth will pay a large chunk of the debt through taxes, but paying off the Covid debt doesn’t fix the bigger problem when it comes to young people and the impact of the pandemic, the one Represents opportunity and trust and financial stability. Short-term job creation and opportunity is more important than taxation. ”
Almost two thirds (65%) believe that there will be further tax increases in the coming years. 71% believe that income tax will rise, 67% think an increase in capital gains tax is likely, while 61% believe we could see a “carbon tax”. 59% believe that a wealth tax could come into effect. Of these, a third of taxpayers were in favor of introducing a wealth tax, and one in ten would like the government to focus on a green recovery from COVID-19 through a carbon tax.
Half of workers said they were concerned about support for their families after they retire, up 10% since the pandemic began. Two in five respondents say they are concerned about supporting their families while at work, and have seen an increase again since the pandemic began, according to 2,000 workers (up 8%).
In addition, a third (32%) believe that many of the economic challenges the country is facing are due to the government’s poor response to the crisis.
Neil summarizes, “There is now an opportunity to have a bigger conversation about stimulating, educating, and repairing our societies. We will live with the effects of the pandemic for a generation or more in the future, so restoring financial confidence in the youth will be a major driver of recovery. “