We’ll beat the Tories by offering a better alternative

Today the Finance Bill is being debated in the Commons. Despite what the Tories want people to believe, their plans will make many of the poorest in society worse off.

The difference between what a Labour government would do, and the damage the Tories plan to inflict, could not be starker.

Just over two months ago George Osborne announced an inheritance tax cut, described by The Economist as “perhaps the daftest economic policy of the decade”.

This will benefit fewer than one in 1000 families a year, but cost nearly £1bn of taxpayers’ cash by 2021.

The Institute for Fiscal Studies has rightly pointed out this will reduce the inheritance tax liabilities of between 20,000 and 30,000 estates each year – saving money for the Uk’s 60,000 richest families. The children that will gain from this cut are disproportionately placed at the top end of the current income scale.

This will do nothing to address the big challenges in our economy, namely boosting productivity and promoting a stable and balanced recovery. Neither will it make our society fairer.

Rather than continue to disproportionately support those with the broadest shoulders I have proposed reversing the Government’s inheritance tax cut, and using that money instead on transforming support during children’s early years. Finland, which tops international education league tables provides intensive support for children in their early years with the primary aim of ensuring children begin school on an equal footing. Radically redesigning our early years education, incorporating the best elements of the Finnish system is within our grasp and can be funded through reversing the inheritance tax cut.

The children receiving this support will not be the sole beneficiaries: our society as a whole will benefit when the opportunity to succeed is based on the ability of the individual not the circumstance of their parents.

We will need to make other choices too – like cutting down on the tax reliefs that often go unchecked and spending that money instead on giving public sector workers a decent payrise, and restoring working tax credits for the low paid. Throughout this leadership campaign I have argued that we will win in 2020 not just when we loudly oppose, but when we offer a better alternative.

Better choices for our country.

Labour choices for our country.

Credible choices for our country.

That’s how we’ll beat the Tories, and stop further budgets like this trapping millions more in poverty.

Liz Kendall MP is standing to be the next leader of the Labour party.