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Rishi Sunak has been accused of a “desperate” briefing on inheritance tax (IHT) after reports suggested it would be slashed ahead of the next election.

It comes as the government confirmed the date of the next spring budget, which will be delivered on 6 March.

With a general election looming next year, Mr Sunak will be under pressure from Tory MPs to announce tax cuts to boost their chances of victory.

On Wednesday, The Daily Telegraph reported that Downing Street is considering axing IHT as part of a “gear change” on tax, having made halving inflation rather than reducing the tax burden a priority of his premiership.

However, Labour rubbished the story as a “desperate briefing from a desperate prime minister who is spending his Christmas break trying to keep Tory MPs on side”.

James Murray, Labour’s shadow financial secretary to the Treasury, said: “There have been 25 Tory tax rises since the last election.

“Now at a time when families across Britain are struggling with the cost of living and our NHS is on its knees, Rishi Sunak is trying to buy off his backbenchers with an unfunded tax cut for millionaires.”

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Inheritance tax is hated by many Conservative MPs and there has long been briefings it could be scrapped.

The prospect is often raised when the party is facing political difficulty, with similar reports emerging back in July ahead of three by-elections the Tories were predicted to lose. (In the end, they lost two out of three).

The Telegraph, which is campaigning to abolish IHT, said scrapping it is one of a handful of major tax cuts that have been discussed by senior figures in Number 10.

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PM refuses to comment on inheritance tax ‘speculation’ back in August

Downing Street called the report “speculation” and refused to comment further.

However, the prime minister’s official spokeswoman said “the vast majority of estates don’t pay inheritance tax” and it is forecast to contribute “almost £10bn a year” by 2028-9 to fund public services.

Around 4% of people pay inheritance tax. At present it is charged at 40% and applies to estates worth more than £325,000, but there are allowances that can mean it’s only paid on more valuable estates.

Those in favour of the tax say it is important for social mobility and abolishing it would be a giveaway for the wealthiest minority.

However Conservative MPs who want to see it scrapped call it a “death tax” because it applies to earnings that have already been taxed.

Read More:
Inheritance tax: Who’s paying it, how much is it generating and is it just the rich who benefit from its abolition?
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Others have called for it to be reformed rather than scrapped, with experts pointing out exemption thresholds allow many couples to pass on up to £1m tax-free.

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Cutting inheritance tax would likely create a dividing line with Labour, which is unlikely to support such a measure.

The party is enjoying a healthy 20-point lead in the polls, and with an election expected by January 2025 at the latest, the spring budget will be one of Mr Hunt’s last chances to announce giveaways that could woo voters.

Today it was also reported that the government could announce support for first-time buyers before polling day, which may include reducing the upfront cost of a home with a scheme for longer, fixed-rate mortgages.

Budget ‘last throw of the dice’

However, Mr Murray said no matter what is announced “the next budget will come after fourteen years of economic failure under the Conservatives that have left working people worse off”.

The Lib Dems also said it was “too late to turn the tide” and called it a “last throw of the dice by a flailing Conservative government”.

Mr Hunt began to ease the historically high tax burden in his autumn statement, including by cutting national insurance.

But millions of workers will still face a squeeze on their finances as the tax burden remains at record high, with a freeze on thresholds still in place.

Ahead of the budget, the chancellor has commissioned the Office for Budget Responsibility (OBR) to prepare an economic and fiscal forecast to be presented to parliament alongside the statement.

This is standard practice before major fiscal events.

The lack of an OBR forecast at his predecessor Kwasi Kwarteng’s mini-budget in September 2022 spooked the markets and sparked a huge economic fallout, pushing up government borrowing costs and putting certain pension funds on the brink of collapse.

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‘Shameful’ that black boys in London more likely to die than white boys, says Met Police chief

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'Shameful' that black boys in London more likely to die than white boys, says Met Police chief

It is “shameful” that black boys growing up in London are “far more likely” to die than white boys, Metropolitan Police chief Sir Mark Rowley has told Sky News.

The commissioner told Sunday Morning with Trevor Phillips that relations with minority communities “is difficult for us”.

Sir Mark, who came out of retirement to become head of the UK’s largest police force in 2022, said: “We can’t pretend otherwise that we’ve got a history between policing and black communities where policing has got a lot wrong.

“And we get a lot more right today, but we do still make mistakes. That’s not in doubt. I’m being as relentless in that as it can be.”

He said the “vast majority” of the force are “good people”.

However, he added: “But that legacy, combined with the tragedy that some of this crime falls most heavily in black communities, that creates a real problem because the legacy creates concern.”

Sir Mark, who also leads the UK’s counter-terrorism policing, said it is “not right” that black boys growing up in London “are far more likely to be dead by the time they’re 18” than white boys.

“That’s, I think, shameful for the city,” he admitted.

The Met Police chief’s admission comes two years after an official report found the force is institutionally racist, misogynistic and homophobic.

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Police chase suspected phone thief

Baroness Casey was commissioned in 2021 to look into the Met Police after serving police officer Wayne Couzens abducted, raped and murdered Sarah Everard.

She pinned the primary blame for the Met’s culture on its past leadership and found that stop and search and the use of force against black people was excessive.

At the time, Sir Mark, who had been commissioner for six months when the report was published, said he would not use the labels of institutionally racist, institutionally misogynistic and institutionally homophobic, which Casey insisted the Met deserved.

However, London Mayor Sadiq Khan, who helped hire Sir Mark – and could fire him – made it clear the commissioner agreed with Baroness Casey’s verdict.

After the report was released, Sir Mark said “institutional” was political language so he was not going to use it, but he accepted “we have racists, misogynists…systematic failings, management failings, cultural failings”.

A few months after the report, Sir Mark launched a two-year £366m plan to overhaul the Met, including increased emphasis on neighbourhood policing to rebuild public trust and plans to recruit 500 more community support officers and an extra 565 people to work with teams investigating domestic violence, sexual offences and child sexual abuse and exploitation.

Watch the full interview on Sunday Morning with Trevor Phillips from 8.30am on Sunday.

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Unite votes to suspend Angela Rayner over Birmingham bin strike

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Unite votes to suspend Angela Rayner over Birmingham bin strike

Labour’s largest union donor, Unite, has voted to suspend Deputy Prime Minister Angela Rayner over her role in the Birmingham bin strike row.

Members of the trade union, one of the UK’s largest, also “overwhelmingly” voted to “re-examine its relationship” with Labour over the issue.

They said Ms Rayner, who is also housing, communities and local government secretary, Birmingham Council’s leader, John Cotton, and other Labour councillors had been suspended for “bringing the union into disrepute”.

There was confusion over Ms Rayner’s membership of Unite, with her office having said she was no longer a member and resigned months ago and therefore could not be suspended.

But Unite said she was registered as a member. Parliament’s latest register of interests had her down as a member in May.

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The union said an emergency motion was put to members at its policy conference in Brighton on Friday.

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Unite is one of the Labour Party’s largest union donors, donating £414,610 in the first quarter of 2025 – the highest amount in that period by a union, company or individual.

The union condemned Birmingham’s Labour council and the government for “attacking the bin workers”.

Mountains of rubbish have been piling up in the city since January after workers first went on strike over changes to their pay, with all-out strike action starting in March. An agreement has still not been made.

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Rat catcher tackling Birmingham’s bins problem

Ms Rayner and the councillors had their membership suspended for “effectively firing and rehiring the workers, who are striking over pay cuts of up to £8,000”, the union added.

‘Missing in action’

General secretary Sharon Graham told Sky News on Saturday morning: “Angela Rayner, who has the power to solve this dispute, has been missing in action, has not been involved, is refusing to come to the table.”

She had earlier said: “Unite is crystal clear, it will call out bad employers regardless of the colour of their rosette.

“Angela Rayner has had every opportunity to intervene and resolve this dispute but has instead backed a rogue council that has peddled lies and smeared its workers fighting huge pay cuts.

“The disgraceful actions of the government and a so-called Labour council, is essentially fire and rehire and makes a joke of the Employment Relations Act promises.

“People up and down the country are asking whose side is the Labour government on and coming up with the answer not workers.”

SN pics from 10/04/25 Tyseley Lane, Tyseley, Birmingham showing some rubbish piling up because of bin strikes
Image:
Piles of rubbish built up around Birmingham because of the strike over pay

Sir Keir Starmer’s spokesman said the government’s “priority is and always has been the residents of Birmingham”.

He said the decision by Unite workers to go on strike had “caused disruption” to the city.

“We’ve worked to clean up streets and remain in close contact with the council […] as we support its recovery,” he added.

A total of 800 Unite delegates voted on the motion.

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Binance’s CZ threatens to sue Bloomberg over Trump stablecoin report

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Binance’s CZ threatens to sue Bloomberg over Trump stablecoin report

Binance’s CZ threatens to sue Bloomberg over Trump stablecoin report

Binance co-founder CZ has dismissed a Bloomberg report linking him to the Trump-backed USD1 stablecoin, threatening legal action over alleged defamation.

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