Tories push Labour to slash spending to fund major inheritance tax cuts

Conservatives intend to pressure Labour leader Andy Burnham to cut public spending in order to fund a sweeping reduction in inheritance tax, targeting family homes, farms and businesses for exemption. Shadow chancellor Andrew Griffith described the tax as immoral and backed a Commons motion to scrap it for family homes, arguing it punishes hard-working families. The party plans to offset the revenue loss by curbing the welfare budget, reinstating a two-child benefit cap and reducing out-of-work benefits such as universal credit.

Kemi Badenoch announced a pledge to raise the inheritance-tax-free threshold to £500,000 under a future Conservative government, claiming the change would cut the number of liable families by more than half and let couples pass on an additional £1 million tax-free. The Conservatives also aim to reverse Labour’s recent farm tax, which was softened after pressure from farmers and rural MPs. The move is seen as a strategy to win back affluent southern voters ahead of the upcoming budget and election.