Shadow Chancellor Rachel Reeves has firmly rejected speculation that Labour would raise inheritance tax if elected, calling the idea "nonsense" and insisting the party has no such plans.
Speaking ahead of the Autumn Budget, Reeves sought to reassure voters that Labour would not target inheritance tax, despite ongoing debates about wealth distribution and fiscal policy.
Why Inheritance Tax Is a Hot Topic
Inheritance tax has long been a contentious issue in UK politics, with critics arguing it unfairly targets middle-class families. Currently, the tax applies to estates worth over £325,000, with a 40% rate on anything above this threshold.
Reeves emphasised that Labour’s focus remains on economic growth rather than increasing taxes on estates. "Our priority is creating a fairer economy, not penalising hardworking families," she said.
What This Means for the Autumn Budget
With the Autumn Budget looming, speculation has been rife about potential tax changes. Reeves’ comments suggest Labour is keen to distance itself from any policies that could be seen as punitive towards savers and homeowners.
Experts suggest the move is a strategic effort to appeal to middle-income voters, particularly in marginal constituencies where inheritance tax is a sensitive issue.
Political Reactions
Conservatives have accused Labour of sending mixed signals on tax policy, while business leaders have welcomed the clarity from Reeves. "Stability in tax policy is crucial for long-term planning," said one industry representative.
As the debate continues, all eyes will be on the Chancellor’s Autumn Budget announcement for further clues on the UK’s fiscal direction.
