This is just the latest panicky promise from the Tories, but we’ve heard it all before.
Before the last election the Tories promised to increase the inheritance tax threshold to £1 million. George Osborne promised that the Tories would honour their proposed inheritance tax cut “in the lifetime of a Parliament”. But they broke that promise.
At a time when our NHS is in crisis and working people are paying more under the Tories, it cannot be a priority to spend £1 billion on a policy which the Treasury's own analysis shows would benefit the wealthiest:
This policy takes only 4 percent of estates out of inheritance tax and has no impact at all on 90 per cent of family estates.
The Tories’ policy announced will mean a £140,000 tax cut for a house worth £2 million when they have also increased VAT on families and pensioners.
Leaked Treasury analysis on the Tory proposal last month revealed that such a scheme would “benefit high income and wealthier households”.
According to a government source the changes would “help the wealthy”.
Labour has made a different, fairer choice with the same money the Tories are using for this. We will go further on restricting pension tax relief for the very highest earners in order to cut tuition fees and increase grants for the next generation, rather than cutting taxes for a wealthy few.
The big question for the Tories is how they will pay for the billions of pounds of promises they are racking up, including £10 billion of tax cuts.
Alongside their extreme plan to double the pace of spending cuts next year, their unfunded promises mean the Tories will end up putting our NHS at risk and raising VAT again.