Conservatives Urge UK Government to Rule Out Tax Increases

Conservative shadow chancellor Andrew Griffith has urged the UK government to rule out tax rises in its upcoming budget, arguing that current tax levels are forcing young people to seek opportunities abroad. Griffith stated that Labour has already increased taxes twice and that businesses are feeling the strain.

Griffith also called for the government to “pause job-destroying red tape,” which he believes is creating a “real chill in the vacancy market.” The Federation of Small Businesses estimates that tax compliance costs small businesses £25 billion annually, with the average small business spending 44 hours per year on tax administration.

The Conservative party has appointed Lord Mackinlay of Richborough and Robert Colvile, the outgoing director of the Centre for Policy Studies, to produce a report on reducing regulations for small businesses. Griffith suggested that savings could be found by reforming the welfare system, reducing foreign aid spending, and cutting administrative costs within central government.

Recent reports suggest the Conservatives might consider abolishing inheritance tax if they win the next election. When asked about this possibility, Griffith indicated that while he is responsible and only wants to make promises he can keep, there is "work to be done" to "fully find the money." He noted that Sweden abolished its inheritance tax in 2005 and that he had recently visited the country.

Reform UK has previously expressed a desire to cut inheritance tax, but Treasury spokesman Robert Jenrick stated it would not be a priority, suggesting it would benefit a smaller number of families compared to income taxpayers. Griffith countered that abolishing inheritance tax could boost economic growth, adding that wealthier individuals often find ways to avoid paying it regardless.