The Tory inheritance tax policy is out of touch and ridiculous

By Angela Eagle, Treasury Minister

This Labour Government has been clear that we want to support people in difficult times – a VAT cut that put money in the economy quickly and is helping both sides of the till, increasing child benefit from January, an extra £60 for every pensioner and bringing forward capital spending to support jobs and economy. All opposed by the Tories.

What the Tories have stuck to is one of their favourite policies – inheritance tax breaks for the wealthiest few. The plan, launched with much fanfare, would give a £200,000 tax cut to a few thousand millionaires’ estates. A plan that would do nothing for 96% of families.

But even on this totemic policy, there has started to be a bit of noise around recently that the Tories are rethinking. See the FT and ConservativeHome today.

No doubt popular with some in their party, Cameron and Osborne are clearly getting the message loud and clear from their focus groups on IHT. At a time when families most need support, it looks out of touch and ridiculous.

What the Tories should do is clear – they should immediately drop their tax pledge for the wealthiest few estates and instead should support Labour’s £145 tax cut for 22 million basic rate taxpayers.