UK Tories Won't Immediately Cut Inheritance Tax, Admits Shadow Chancellor
Andrew Griffith cites concerns over inherited public finances, while party leader Kemi Badenoch has previously hinted at the moral imperative of reducing death duties.
The Conservative Party will not be able to implement immediate cuts to inheritance tax if they win power, according to shadow chancellor Andrew Griffith. He stated that any tax cuts or spending increases would only be funded after a clear plan for their payment has been established.
Griffith expressed concerns that a Labour government might leave behind public finances described as "the worst in history," exacerbated by rising borrowing costs. This comes as party leader Kemi Badenoch has previously suggested that reducing inheritance tax could be "morally right," arguing that individuals should not be "taxed twice" when passing assets to their children.
Badenoch has indicated openness to reforming the inheritance tax, which is levied on estates exceeding £325,000, but only if such changes are fiscally responsible. Griffith, speaking on Sky News, acknowledged the desire to eventually abolish the tax, a sentiment he and Badenoch have publicly shared. He described inheritance tax as a disincentive to hard work and saving, and a potential "double or triple tax."
However, he cautioned that the Conservatives would inherit a challenging financial situation, marked by high debt levels, a significant tax burden on citizens, and interest costs on government borrowing at a 28-year high. "We won't be able to do everything that we want to do on day one," Griffith stated, emphasizing the need for fiscal responsibility.
Inheritance tax, a 40 percent levy, applies to estates above £325,000. For most married couples, this threshold effectively rises to £1 million due to transferable allowances and relief on the value of a primary residence passed to heirs. Ahead of the Conservative Party conference in Birmingham, Badenoch told the Sunday Times that taxing people twice was "morally wrong" and that the government should not take away what individuals have worked hard to provide for their children. She reiterated that tax cuts would only be announced if their funding could be demonstrated, stressing the importance of fiscal responsibility.