Connect with us

Published

on

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.”

More on Spring Statement

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.

Please use Chrome browser for a more accessible video player

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?
When could the next general election be?

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.

Click to subscribe to the Sky News Daily wherever you get your podcasts

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.

Continue Reading

Politics

Crypto influencer found dead in Montreal park months after abduction

Published

on

By

Crypto influencer found dead in Montreal park months after abduction

A 32-year-old woman has been charged with murdering Mirshahi. However, it isn’t confirmed whether the case has ties to his involvement with crypto. 

Continue Reading

Politics

Assisted dying opponents believe they have the momentum – as Streeting criticised for ‘overstepping the mark’

Published

on

By

Assisted dying opponents believe they have the momentum - as Streeting criticised for 'overstepping the mark'

Labour MPs who are opposed to legalising assisted dying believe the momentum is swinging behind their side of the campaign, Sky News has learnt.

MPs are currently weighing up whether to back a change in the law that would give terminally ill people with six months to live the choice to end their lives.

At a meeting in parliament on Wednesday, Sky News understands Labour MPs on the opposing side of the argument agreed that those who were undecided on the bill were leaning towards voting against it.

One Labour backbencher involved in the whipping operation for the no camp told Sky News: “The undecideds are breaking to us, we feel.”

The source said that many of those who were undecided were new MPs who had expressed concerns that not enough time had been given to debate the bill.

“They feel they are too new to be asked to do something as substantive as this,” they said.

Politics latest: Farage mocked over ‘rare’ PMQs appearance

Issues that were being brought up as potential blocks to voting for the legislation include that doctors would be able to suggest assisted dying to an ill patient, they said.

The source added: “We were elected to sort the NHS out rather than assisted dying.

“And there is no going back on this – if any doubt, you should vote it out.”

Please use Chrome browser for a more accessible video player

Labour MP Kim Leadbeater discusses End of Life Bill

The Terminally Ill Adults (End of Life) Bill, put forward by Labour MP Kim Leadbeater, is due to be debated on 29 November, when MPs will be given a “free vote” and allowed to vote with their conscience as opposed to along party lines.

In a recent letter to ministers, Cabinet Secretary Simon Case said the prime minister had decided to “set aside collective responsibility on the merits of this bill” and that the government would “remain neutral” on its passage and the matter of assisted dying.

There has been much debate about the bill since its details were published on Monday evening, including that the medicine that will end a patient’s life will need to be self-administered and that people must be terminally ill and expected to die within six months.

Ms Leadbeater, who has the support of former government minister Lord Falconer and ChildLine founder Dame Esther Rantzen, believes her proposed legislation is the “most robust” in the world and contains safeguards she hopes will “reassure” those who are on the fence.

They include that two independent doctors must confirm a patient is eligible for assisted dying and that a High Court judge must give their approval.

The bill will also include punishments of up to 14 years in prison for those who break the law, including coercing someone into ending their own life or pressuring them to take life-ending medicine.

She has also argued the fact terminally ill patients will have to make the choice themselves and administer the drugs themselves “creates that extra level of safeguards and protections”.

However, several cabinet ministers – including Health Secretary Wes Streeting and Justice Secretary Shabana Mahmood, who would be responsible for the new law – have spoken out against the legislation.

Mr Streeting, who has said he intends to vote against the bill owing to concerns that people might be coerced into taking their own lives, announced a review into the potential costs of assisted dying if it is implemented.

The health secretary warned that a new assisted dying law could come at the expense of other NHS services – and that there could be “trade-offs” elsewhere.

Sky News understands Ms Leadbeater has said she is “disappointed” by Mr Streeting’s comments about the bill.

Please use Chrome browser for a more accessible video player

Tory MP: ‘Impossible’ for assisted dying bill to be safe

And another Labour MP who is voting for the legislation told Sky News they believed Mr Streeting had “overstepped the mark”.

“I think it’s a bit of a false exercise,” they said.

“It’s definitely going to raise eyebrows – it’s one thing to sound the alarm but he is purposefully helping the other side.”

The MP said that while it did feel “the momentum is moving away from us, a lot of it will come down to the debate and argument in the chamber”.

“Some of the scaremongering tactics might backfire,” they added.

“It’s still all to play for but it’s undoubtedly true the other side seems to be making headway at the moment.”

Read more:
Where it’s already legal and why it’s controversial

Ban jeering in parliament report suggests

A source close to Mr Streeting told Sky News: “Wes has approached this issue in a genuine and considerate way, setting out his own view while respecting others’ views.”

As a private member’s bill that has been put down by a backbencher rather than a government minister, the legislation will not receive as much time for consideration as a government bill – but proponents say it can always be amended and voted down at later stages.

At Prime Minister’s Questions on Wednesday, Tory MP Sir Alec Shelbrooke questioned whether enough time had been set aside to debate the bill and urged Sir Keir Starmer to allow two days, or 16 hours, of “protected time” to “examine and debate” the legislation before the vote.

Sir Keir replied: “I do think there is sufficient time allocated to it but it is an important issue.”

Continue Reading

Politics

Assisted dying: Wes Streeting orders review into potential costs of changing the law

Published

on

By

Assisted dying: Wes Streeting orders review into potential costs of changing the law

Health Secretary Wes Streeting has ordered his department to carry out a review of the costs of potentially changing the law to legalise assisted dying.

Mr Streeting, who intends to vote against a landmark bill on the issue, has warned that a new assisted dying law could come at the expense of other NHS services if it is implemented.

It comes as MPs weigh up whether to vote for a change in the law when given the opportunity to do so later this month.

The Terminally Ill Adults (End of Life) Bill, put forward by Labour MP Kim Leadbeater, would give terminally ill people with six months to live the choice to end their lives.

There has been much debate about the bill since its details were published on Monday evening, including that the medicine that will end a patient’s life will need to be self-administered and that people must be terminally ill and expected to die within six months.

Politics latest: Farage mocked over ‘rare’ PMQs appearance after US trips to back Trump

Ms Leadbeater, who has the support of former government minister Lord Falconer and ChildLine founder Dame Esther Rantzen, believes her proposed legislation is the “most robust” in the world and contains safeguards she hopes will “reassure” those who are on the fence.

More on Assisted Dying

They include that two independent doctors must confirm a patient is eligible for assisted dying and that a High Court judge must give their approval.

The Labour MP has argued the fact terminally ill patients will have to make the choice themselves and administer the drugs themselves “creates that extra level of safeguards and protections”.

Please use Chrome browser for a more accessible video player

MP discusses End of Life Bill

However, several cabinet ministers – including Mr Streeting and Justice Secretary Shabana Mahmood, who would be responsible for the new law – have spoken out against the legislation.

Announcing the review, Mr Streeting said: “Now that we’ve seen the bill published, I’ve asked my department to look at the costs that would be associated with providing a new service to enable assisted dying to go forward, because I’m very clear that regardless of my own personal position or my own vote, my department and the whole government will respect the will of parliament if people vote for assisted dying.”

Ms Leadbeater has said she is “disappointed” with Mr Streeting’s comments – telling The House magazine the health secretary’s comments “suggest he hasn’t read the bill”.

While the health secretary has warned of the potential cost downsides for the NHS, his critics have pointed out there may be potential savings to be made if patients need less care because they choose to end their own lives – something Mr Streeting branded a “chilling slippery slope argument”.

“I would hate for people to opt for assisted dying because they think they’re saving someone somewhere money – whether that’s relatives or the NHS,” he said.

“And I think that’s one of the issues that MPs are wrestling with as they decide how to cast their vote.

Please use Chrome browser for a more accessible video player

‘Impossible’ for assisted bill to be safe

“But this is a free vote – the government’s position is neutral.”

Speaking to reporters after delivering a speech to the NHS Providers conference in Liverpool, Mr Streeting said there were “choices and trade-offs” and that “any new service comes at the expense of other competing pressures and priorities”.

“That doesn’t mean people should vote against it on that basis,” he said.

“People need to weigh up this choice in the way that we’re weighing up all these other choices at the moment.”

Read more:
Why is assisted dying controversial – and where is it legal?
Cancelled pay rises for managers among proposed NHS reforms

MPs will debate and vote on Ms Leadbeater’s Private Member’s Bill on 29 November, in what will be the first Commons vote on assisted dying since 2015.

The government has given MPs a “free vote” on the issue, meaning they will be able to vote according to their conscience and without the pressure to conform to party lines.

In 2015, a bill by former Labour MP Rob Marris that would have made it legal for the terminally ill to end their lives was defeated in the Commons by 330 votes to 118.

Continue Reading

Trending