Downing Street ‘mulls scrapping inheritance tax as manifesto pledge’
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owning Street is reportedly holding talks about scrapping inheritance tax as a manifesto providing in a bid to win the subsequent election.
The Times reported that No 10 was discussing whether or not to make abolishing the levy a dedication to shore up votes in so-called “blue wall” seats in 2025.
Supporters argue that the coverage may very well be a “gamechanger” within the south of England the place the Conservatives are defending constituencies weak to positive aspects from opposition events, in keeping with the paper.
Rishi Sunak made halving inflation by the tip of the yr one of many 5 key ambitions for his management, and Jeremy Hunt has signalled this goal can be prioritised over tax cuts.
The wider financial problem going through the Chancellor and Prime Minister was illustrated by official figures exhibiting the UK financial system contracted in May.
While the occasion continues to path Labour within the polls, The Times reported that abolishing inheritance tax was being thought-about as a manifesto pledge, fairly than a coverage to be carried out subsequent yr.
“It’s about being an aspirational country. You work hard, play hard and pass on your wealth. It’s a live discussion,” one supply aware of the discussions instructed the paper.
The price of inheritance tax is presently 40% for estates value greater than £325,000, which is simply charged on the portion that’s above the edge.
Consumer Prices Index inflation peaked at 11.1% development final yr and was final reported at 8.7% for May.
Abolishing inheritance tax may value the Treasury a possible £7 billion a yr and could be contingent on that determine falling considerably, the Times reported.
A No 10 supply mentioned: “The PM has repeatedly said that he wants to cut taxes for people.
“As Conservatives that is obvious, we want people to keep more of their own money. But the current economic situation means that Government is completely focused on halving inflation – to help people have more in their pockets at the end of each month.
“This kind of future-scoping speculation just isn’t on his mind at the moment and requires a different kind of economic environment to the one we are operating in.”