Inheritance Tax Battle Heats Up Ahead of General Election
With the general election looming, inheritance tax (IHT) is at the heart of a fiery political row. Cabinet minister Grant Shapps has stoked the debate, hinting at possible changes while Chancellor Jeremy Hunt braces for fiscal realities.
Shapps Slams ‘Unfair’ Inheritance Tax
On Sky News, Grant Shapps said: “There’s something deeply unfair about being taxed all your life and then being taxed in death as well.” He spoke from experience, having recently lost a parent, and said the tax hits people hard. But Shapps admitted it’s a tricky issue for Chancellor Hunt, who he believes is trapped in a “fiscal straitjacket.”
Hunt, for his part, has warned that any major tax changes won’t come in the upcoming autumn statement and that the public will have to wait for a future budget or event to hear government plans.
No Plans Yet, But Pressure Mounts
Downing Street denies any firm plans to axe inheritance tax. The rate remains a hefty 40%, but many estates dodge the charge thanks to a high threshold—up to £1 million for a couple. In 2020-21, just 3.73% of deaths faced the tax.
Yet Tory pressure is rising. Former PM Liz Truss has called for the tax’s scrapping. Meanwhile, Labour’s shadow Treasury chief Darren Jones slammed the idea as an “unfunded tax cut of £7.2 billion per year.” He demands Chancellor Hunt explain how any change would be paid for.
Pensions, Politics and Polls
On the pension front, The Mail on Sunday revealed Rishi Sunak plans to back the triple lock—keeping pension rises pegged to inflation, earnings, or 2.5%—despite warnings over its affordability amid rising costs.
As Westminster braces for the general election, recent by-elections saw the Tories hold a seat vacated by Boris Johnson, amid ULEZ controversy. Yet Labour leads strongly in national polls, casting doubt on whether local issues will shift the electoral tide.
The inheritance tax debate, alongside looming tax and pension reforms, promises to be a key battleground in the fight for votes.
