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Norman Lamont, a former Conservative chancellor, has advised Rishi Sunak to disregard demands from his fellow MPs to eliminate inheritance tax.
The prominent member of the Conservative party stated that he does not believe the argument that the tax on inherited money is disliked by many. He advised the Prime Minister to focus on reducing income tax instead.
The PM and his chancellor are facing pressure to implement tax reductions by 6 March, with Mr Sunak and Jeremy Hunt reportedly discussing the possibility of eliminating or reducing inheritance tax.
Prominent Conservative figures such as Sir Iain Duncan Smith and Sir Jacob Rees-Mogg have advised him to eliminate inheritance tax in an effort to improve the party’s polling numbers before the upcoming election.
Former chancellor Lord Lamont, who served under John Major from 1990 to 1993, stated that reducing the benefit only benefits a small portion of the population and does not agree with the belief that it is universally disliked.
“The main goal should be to benefit the greatest number of individuals from any available solutions,” stated the Conservative member of the House of Lords in an interview with The Telegraph. “My primary focus would be on increasing income tax thresholds, as they have the most impact on people.”
Lord Lamont suggested that providing relief to those who have incurred costs due to measures implemented during the pandemic would be beneficial. He also mentioned that the general population would appreciate the hope of a brighter future.
During John Major’s tenure, Norman Lamont served as the Conservative Party’s chancellor.
Although there have been demands from the conservative faction to eliminate the despised inheritance tax, only a small percentage of estates in the UK actually pay this tax on inherited assets such as property, money, and shares.
The esteemed Institute for Fiscal Studies reports that the top 1% of individuals in Britain would gain 47% of the advantage from eliminating it. It is predicted that inheritance tax will contribute nearly £10 billion annually to government funds by 2028-29.
The Telegraph reports that there is consideration being given to eliminating inheritance tax as part of a tax overhaul. However, both No 10 and the Treasury have downplayed these claims as mere speculation.
A group of Conservative Members of Parliament who have shown support for the Conservative Party’s traditional views have also requested that Mr. Sunak implement tax reductions for individuals with lower incomes instead of reducing inheritance tax for the wealthiest individuals in the upcoming March session.
According to John Stevenson MP, leader of the Northern Research Group, focusing on earnings and thresholds is more advantageous for a larger group of individuals than inheritance tax. This statement was made to the Daily Mail.
Neil O’Brien, who previously served as a minister and now represents the Harborough constituency as a Conservative Member of Parliament, suggested that Mr Hunt should provide tax reductions for individuals in lower income brackets to alleviate the financial burden of living expenses, as well as implement tax cuts that would improve productivity.
Despite this, a number of prominent members of the Conservative party continue to urge the Prime Minister and Chancellor to take action regarding inheritance tax. Sir Jacob stated that he believes inheritance tax to be a harmful and unjust tax that should be abolished.
Previous leader, Sir Iain, stated: “I would completely eliminate it. The consequences on the political sphere would be significant.”
Ranil Jayawardena, the head of Liz Truss’ Conservative Growth Group, stated that the government must act swiftly and decisively by eliminating inheritance tax before it’s too late.
Source: independent.co.uk
