Reform UK has officially ruled out the abolition of inheritance tax, setting the stage for a major ideological battle with the Conservative Party. While Tory leader Kemi Badenoch is reportedly weighing a plan to scrap the 40 per cent levy, Reform's prospective Chancellor Robert Jenrick has branded the move as a way to privilege the wealthy during a cost-of-living crisis.
An echo of George Osborne’s 2007 tax pledge
The current tension between Reform UK and the Conservatives mirrors a significant moment in British political history. As reported by The Mail on Sunday, Conservative leader Kemi Badenoch may unveil a major policy to abolish inheritance tax at the party's annual conference next month. This strategy draws a direct parallel to the 2007 pledge made by then-Shadow Chancellor George Osborne, which was famously credited with preventing Prime Minister Gordon Brown from calling a snap election.
By revisiting this tactic, the Conservative Party appears to be testing whether a high-profile tax cut can galvanize their base. However, Reform UK's Robert Jenrick argues that the political landscape has shifted significantly since the Osborne era, suggesting that the "big divide" in modern British politics makes such a move a liability rather than an asset.
The 30,000 estates and the £325,000 threshold
Robert Jenrick has acknowledged that the current 40 per cent levy on deceased estates is "unfair" and "very unpopular," yet he maintains that Reform UK will not follow the Conservatives in scrapping it.. According to the report, the tax is only paid by approximately 30,000 estates with a value exceeding £325,000. Jenrick argued that because the tax "doesn't raise very much money," the political cost of abolishing it outweighs the fiscal benefit.
The Reform UK candidate for Chancellor also highlighted the collateral damage caused by the current system, noting that the levy often causes "a huge amount of damage to family farms and businesses." For Reform, the issue is not just about the revenue generated, but about the perceived injustice of a tax that targets specific assets while leaving other areas of the economy untouched.
A battle between Belgravia and the £15,000 income bracket
The political contest is being framed by Reform UK as a fundamental choice between different classes of citizens. Robert Jenrick has explicitly contrasted the Conservative focus on the "super-rich" with Reform's commitment to working people. he stated that Reform would rather increase the personal allowance so that pensioners and workers earning less than £15,000 are spared income tax, rather than reducing taxes for "big businesses" or those in "Belgravia."
This "workers versus the wealthy" narrative is designed to exploit the current cost-of-living crisis. Jenrick argued that it would be "morally wrong" to prioritize tax cuts for a small number of wealthy households when the country is facing such "straitened circumstances." By positioning Reform as the party of the low-income earner, the organization is attempting to draw a sharp line in the sand against the Conservative platform.
Will Kemi Badenoch's conference announcement be costed?
Despite the mounting speculation, several critical details regarding the Conservative Party's position remain unverified. While a party spokesman noted that Kemi Badenoch has expressed a desire to cut taxes,including inheritance tax, the actual implementation remains a question mark. Shadow Foreign Secretary Tom Tugendhat has stated that Badenoch will not make an official announcement until the upcoming party conference.
Furthermore, Conservative sources have emphasized that any plan to abolish the tax will only be confirmed if it can be "fully costed." This leaves a significant gap in the current debate: the public does not yet know how the Conservatives intend to fill the fiscal hole left by the removal of the 40 per cent levy , or whether the policy will survive the scrutiny of the party's internal treasury assessments.
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