Adil Hussain

A group of millionaires came together this month to ask the Government to tax them more — here’s why it’s a flawed idea.

The problem is that the UK Government (Labour and Tory alike) has consistently proven that it’s bad at allocating money for various reasons (point in case -> HS2).

Instead, these millionaires could do 2 things:

1. Set up social enterprises

These millionaires (assuming they got rich due to their graft) likely have key skills that they can offer the public.

They should double down on these by starting social enterprises — which are just businesses that are profit-driven *and* have a social purpose.

This is the perfect way to make a project sustainable. Make a compelling business that solves a social problem but also makes enough money to be viable and self-sustaining.

For example, building affordable homes — you can price them below market value and still make money.

2. Establish a waqf (endowment)

A waqf is an endowment (donation of money for a specific cause).

The idea is that you donate an asset or cash which is invested and the profits generated will go to the cause you care about.

The key part of this model is that it’s self-sustaining.

These wealthy millionaires can create a waqf for each specific issue they care about and:

1. Ensure it’s only used for that specific cause
2. Choose a qualified and capable administrator to look after the waqf

A nation of awqaf (plural of waqf) can transform a society and create lasting change.

Final words

The current system is broken. Decisions are made for the short term to satisfy voters/lobbyists.

This is why we see lingering issues and rising inequality. To change things we have to do things differently.

These are 2 humble suggestions that I think could have a big impact. What do you guys think?