Downing Street Mulls Scrapping Inheritance Tax to Win ‘Blue Wall’ Seats
Downing Street is eyeing a bold move to axe inheritance tax as a key manifesto promise ahead of the next election. The Times reports No 10 is seriously considering ditching the 40% levy to woo voters in vulnerable Tory “blue wall” constituencies across southern England.
Inheritance Tax Cut Seen as Game-Changer in Tory Heartlands
Backers say abolishing inheritance tax could be a crucial vote-winner where the Conservatives are fighting off Labour gains. The tax, which bites 40% on estates worth over £325,000, is widely unpopular with wealthier voters. Spouses and civil partners can currently pass on up to £1 million tax-free.
Sunak Focuses on Inflation, But Tax Cut Talk Simmers
Rishi Sunak has pledged to halve inflation by year’s end, with Chancellor Jeremy Hunt signalling that tackling inflation is the top priority — even above tax cuts. Official figures show the UK economy shrank in May, highlighting the tightrope the government must walk.
“It’s about being an aspirational country. You work hard, play hard, and pass on your wealth. It’s a live discussion,” said a source close to the talks.
Political Gamble That Could Cost Treasury £7 Billion a Year
Scrapping inheritance tax could cost the Treasury an eye-watering £7 billion annually, according to estimates. A Downing Street insider said, “The PM wants to reduce taxes and let people keep more of their money. But right now, we must focus on halving inflation. Future tax plans need a better economic backdrop.”
Whether this inheritance tax bombshell makes it into the Tory manifesto remains to be seen. But with Labour ahead in the polls, any move to woo traditional Conservative voters is being closely watched.
