Reeves accused of ‘punishing families’ with inheritance tax raid – that still ‘won’t fill Labour’s blackhole’
Former Treasury adviser says tax changes won’t fix £50bn black hole
- Labour's Rachel Reeves is facing criticism over potential inheritance tax reforms, including scrapping the "seven-year rule", aimed at addressing the UK's significant fiscal shortfall.
- Jonathan Portes, a former Treasury adviser, stated that while inheritance tax reform is needed, these changes would not generate the tens of billions required to fill the estimated £50bn black hole.
- Critics, including Tory shadow chancellor Sir Mel Stride and various tax experts, warn that the proposed changes could penalise working families, deter pension savings, and negatively impact economic growth.
- Concerns have been raised that the reforms could result in a larger portion of estates going to the Treasury rather than heirs, potentially discouraging wealth accumulation and investment.
- A spokesperson for HM Treasury emphasised the government's focus on economic growth to strengthen public finances and its commitment to keeping taxes low for working people.