Osborne’s inheritance tax plans prove his “them” and “us” agenda

For the past four years the Tories have been waxing lyrical on the economy. “Labour got us into this mess, we’re getting us out of it”; so their cult-like mantra goes.

Ignoring the factual inaccuracies of this kind of statement, the Tories latest inheritance tax proposals make it pretty clear (for any of you who were in doubt) who the ‘us’ is in this equation.

Over the weekend it came to light that George Osborne is planning to raise the inheritance tax threshold to £2million if the Tories win in May.

This would be a huge increase on the existing entry amount. Currently when someone dies, they pay 40% inheritance tax if their estate – this includes their property, money and possessions – is worth more than £325,000.

The Tories would therefore be increasing the threshold by one million six hundred and seventy-five thousand pounds. They say this is to ensure only the rich pay the tax. But creating a chasm of over £1.5 million between current and projected thresholds, when the average salary in the UK is £26,500, shows that Cameron and co. have an entirely unrealistic understanding of what constitutes being wealthy.

As it stands, a small proportion of people are affected by this tax. Between 2010-2011 a mere 15,600 estates were liable to pay the tax, hardly a large amount. If the Conservatives increase the threshold, even fewer people will have to pay.

In reality, through these changes Osborne will essentially give the rich yet another tax break.

This is not a new policy. In fact, it’s rooted in Conservative ideology; in 2010 Cameron wanted to raise the threshold to £1million but was blocked by the Lib Dems. It’s no surprise then they’re going to try and push this through again (only this time to create an even higher threshold). The Tories are opposed to the inheritance tax because it threatens the patrimonial system of power and wealth that they’re constantly trying to defend.

Meanwhile they have no qualms about committing to further brutal cuts that disproportionately affect those already disadvantaged in society. On their watch research shows children from poor families have been hit the hardest by cuts. Foodbank use in the past year shot up by 163%, a result of Tory policy as significant factors that account for this rise are low pay, underemployment and welfare sanctions. And in terms of slashing local government budgets, cuts in the most deprived areas have been ten times greater than in the least deprived.

Osborne’s plans for increasing the threshold are signal to the electorate: there is a ‘them’ and ‘us’ when it comes to the economy, but most of the people in the country fall into the former. While it’s the latter the Tories are bothered about protecting.