Despite claims from Business Minister John Hutton that the Government is powerless to close the widening wealth gap, this report lays out a range of economically and politically feasible measures that could cap unjustifiable fortune building at the expense of others and secure a fairer distribution of rewards:

• Banks should run higher levels of capital requirements to improve countercyclical policy.
• Greater transparency is needed in the extent of risk inherent in financial products.
• Private equity companies should have the same disclosure requirements as public companies.
• International controls need to be strengthened.
• Bonus payments should be deferred until the performances of those receiving bonuses become clear.
• Institutional investors need to take a greater role on pay, while remuneration committees need to be strengthened.
• The Competition Commission should launch an inquiry into the fees charged by investment banks.
• The Government needs to reassert a commitment to the principle of progressive taxation.
• New rules should limit the tax relief available on leveraged loans.
• Inheritance tax should be replaced with a lifetime receipts tax.
• Capital gains should be treated as income.
• A much more concerted attack is needed on tax avoidance by, for example, introducing a minimum tax rate for those earning over £100,000 and taking a tougher stance on the non-domiciliary rule.
• The Government should finance either a regular independent social audit that analyses the impact of increasing wealth concentration on wider life chances or establish a permanent Wealth Commission parallel to the Low Pay Commission.