THE QUESTION AFTER yesterday’s budget announcement is simple: who actually benefited from it? The answer is clear. Most people in Britain did not. They continue to face rising taxes in various forms while public services decline.
The impact of this budget touches every part of the country, including the Muslim community. From the many discussions taking place before and after the announcement, two points stood out. First, how little influence the general masses have over budgetary decisions. Second, there is a growing need for a genuine alternative to the current system.
Limited Influence Over Economic Policy
Everyone has a view on what a fair and effective budget should include, yet these views rarely influence government decisions. A study by Princeton University found that in democratic systems, the general public has almost no impact on economic policy. In contrast, the wealthy elite and large corporations shape policies in their own interests.
This exposes an uncomfortable truth: the system is structured to serve those who already hold wealth.
Consider the interest-based banking system, a foundation of Western capitalism. Banks readily lend to people who already have capital, confident that they will recover interest or collateral even if a venture fails. A poor person with a brilliant idea is often denied funding because they lack collateral. The wealthy are protected even in failure, while the poor struggle to find opportunity.
Wealthy individuals also tend to conduct business with one another. They exchange loans, favours and mutually beneficial deals, allowing wealth to circulate within their own networks. Meanwhile, the wider population becomes increasingly marginalised.
The Need for an Alternative
This leads to the second key point. Across the world, more people are searching for an alternative to a system dominated by billionaires and defined by extreme inequality.
The core issue is not that the poor lack effort or that middle-income earners, such as those making £100,000, must carry heavier tax burdens because they are considered financially comfortable. These arguments only create a class war, while the ultra wealthy remain untouched.
The deeper problem is the structure of the system itself. It is flawed and unequal by design.
Yet Muslims often hesitate to advocate for the alternative that Islam offers. Many suggest partial policy tweaks but avoid presenting the complete system revealed by Allah.
This hesitation is difficult to understand. Muslims recognise that the most just and beneficial system for humanity is the one established by Allah and His Messenger ﷺ. The influence of secularism may have caused some to overlook the depth of Islamic economic principles.
These principles allow individuals to seek profit, but never at the expense of society. It guides on how to earn, how to spend and importantly how to distribute wealth. In this system, human beings are valued for their dignity, not treated as mere economic units. Islamic governance creates a balanced economic environment by encouraging shared risk between rich and poor. History records its effectiveness. During the Khliafah of Umar ibn Abdul Aziz, it is said that no eligible recipients of zakat could be found across the vast territories of the state.
The Islamic system also kept taxation minimal. State revenue came from defined sources such as zakat (surplus wealth tax on Muslims), ushr (agriculture tax), kharaj (land tax), jizya (tax on non-Muslim citizens), fa’i and khums (war booty), a share of hidden treasures, voluntary sadaqah, inheritance without heirs, property of apostates, and income from state-managed public resources such as oil, gas, forests, rivers and land. Reciprocal customs duties also contributed. Beyond these, there were no additional taxes. In extreme emergency the state could ask for one off contributions but only from those with surplus wealth.
There was no income tax, national insurance, road tax, fuel duty, VAT, stamp duty or the myriad other taxes found in modern capitalist states that are subject to change at any time.
It was a simpler and fairer system, supported not only by clear legal rules but also by a strong moral conscience rooted in taqwa, which reduced the urge to evade obligations.
This system fulfils what Allah intended when He said:
كَىْ لَا يَكُونَ دُولَةًۢ بَيْنَ ٱلْأَغْنِيَآءِ مِنكُمْ
“ … so that it does not circulate solely among the rich among you.” (al Hashr 7)
It is unfortunate that many Muslims hesitate to present this divinely guided system as a real alternative when the entire world is crying out for change.
We should remember that Allah will account for even the smallest amount of good or evil on the Day of Judgement. A word spoken in support of the truth and justice of Islam carries immense value, while speech without purpose carries none.
Living For Islam 