Inheritance tax (IHT) is a symbol of how Labour’s tax policies will punish the very people who fuel our economy.
Originally intended to capture wealth only from Britain’s richest, this tax is now an increasing burden on the hard-working backbone of the UK - middle-class families.
Far from helping working families get ahead, continuing to freeze the threshold – let alone a reduction, removing IHT exemptions such as pensions or changing the rules around gifts, hits those who have been responsible with their finances, forcing them to pay yet again on assets they have already been taxed on in their lifetime.
Financial responsibility is not just about personal security; it is about giving a leg up to your children and grandchildren.
Most people want their children to have a better life than they had. Labour’s punitive tax policies threaten this basic aspiration.
I have never forgotten the story a chap told me a few years ago when I was out campaigning. He explained that he and his neighbour had similarly paid jobs.
He had lived responsibly - caravan holidays, saving for his pension, and paying off his mortgage, while his neighbour spent freely and had used equity release on his home for new cars and holidays abroad.
The saver — who wanted to ensure he could manage in his retirement and leave something for his own children — is the one penalised, while the neighbour who spent everything will be subsidised by the taxpayer.
This is the heart of the issue: Labour’s approach discourages self-reliance and careful planning. It pushes people towards state dependency. This is so wrong.
People should be rewarded, not punished, for saving and investing in their families’ futures. Labour has already shown it is completely out of touch. It will tax middle Britain.
Faced with looming “death taxes,” people will not save, invest, or build wealth to pass on to their children. Instead, Labour’s policies encourage them to spend. Personal responsibility, thrift, and hard work have no place under this Labour government. Many more will become dependent on the state. What we need is a fairer tax system, one that does not punish people simply for being financially responsible.
The IHT threshold has been frozen for years, which has pulled thousands of ordinary families into a tax bracket they never anticipated.
Soaring property prices over time mean that many families in ordinary homes are now considered “wealthy” by IHT standards.
Continuing to freeze the threshold is bad enough, but God help all those put upon families, who are not wealthy by any reasonable standard, if Rachel Reeves reduces it.
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For entrepreneurs, business owners, and savers, Labour’s rumoured plans for IHT removes the incentive to grow their assets.
Labour’s hostility to wealth creation dampens the ambition of job creators and innovators — the very people Britain’s economy depends on for growth and prosperity. Wealth and success should be celebrated, not punished.
As a Conservative, I believe in fairer, smarter taxation that supports hard-working families, respects personal responsibility, and ensures the prosperity of the next generation. IHT needs reform. It is not about helping the wealthy – it is about giving ordinary people the freedom to pass down what they have earned.
Conservatives know that IHT reform will inspire people to save, plan, and build a future for themselves and their families.
Labour’s tax policies are spiteful and will take advantage of ordinary families, forcing them to pick up the bill while undermining hard work, thrift, and financial responsibility.
Only the Conservatives can deliver a tax system that respects aspiration, encourages wealth creation, and strengthens family legacies for generations to come.
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