Rishi Sunak is gearing up to slash inheritance tax, but there are concerns that there are "more urgent priorities" for the people of Britain
Rishi Sunak is gearing up to slash inheritance tax, but there are concerns that there are "more urgent priorities" for the people of Britain.
No 10 is trying to play down reports that the Government plans to slash the tax. But discussions are said to be taking place within the Government about changes to the tax.
While Chancellor Jeremy Hunt has said there is no room for tax cuts, Shapps this week described inheritance tax as "deeply unfair" and "punitive".
He said: "I think it’s a question, for many people, of aspiration, and people know that there’s something deeply unfair about being taxed all their lives and then being taxed in death as well."
An influential backbencher told GB News that the UK is unlikely to see immediate inheritance tax cuts at the Autumn Statement, but they could be included in the manifesto ahead of the next general election - expected to take place next May.
They questioned the urgency of changes to inheritance tax, saying: "I would not myself choose to cut inheritance tax on either of the budgets taking place ahead of the general election.
"I think there are more urgent priorities affecting people in Britain."
Shapps echoed this, admitting that the Chancellor is in a “fiscal straitjacket”, meaning that any changes are unlikely to feature in November’s Autumn Statement will contain any immediate changes to the way the tax is administered.
He said: "“You will certainly have to wait for a Budget, or another event, for the government to set out whatever the plans will be.
"Generically, I’m in favour of all taxes being lower, but we’ve got to be fiscally responsible.”
Inheritance tax is paid on estates worth over £325,000.
A senior government source told The Sunday Times: "No 10 political advisers have been looking at abolishing inheritance tax as something that might go in the manifesto.
"It’s not something we can afford to do yet."
Labour has criticised the plans, with Shadow Treasury Chief Secretary Darren Jones saying: "A year ago, Liz Truss trashed the economy with unfunded tax cuts.
LATEST DEVELOPMENTS:
"Now Rishi Sunak is doing what Liz Truss wants.
"Abolishing inheritance tax – which 96 per cent of people never pay – is an unfunded tax cut of £7.2bn per year.
"The biggest threat to the economy is the Conservative Party."
