The Tories reposition themselves on inheritance tax

seb

The tax cuts are off. You cant go on and on about debt, want to be seen as a moderate on public services and promise big tax cuts.

Why are we suprised that the one of these 3 least important to cameron is the one which gave way?

Trumpeter Lanfried

It seems the Tories are still fighting the last election but one. Don't they realise the world has moved on? The slogan 'Tory Cuts' is now a sure fire vote winner.

Paul B

He`s right though isn`t he. For two reasons. Crashing house prices make it less of an issue and they- an incoming Tory adminsitration- have more important fish to fry than worrying about IHT

David

Adam Smith would be pleased.

jon

British people must sell their houses to immigrants from countries that do not have inheritance tax and non-domiciles who do not pay tax on world wide income. Why is Britain one of the only countries in the world with this tax?

bernerlap

Frankly, this is sensible politics. We all have political aspirations, mine would be a £0.15 flat rate of income tax. The abolition of all capital taxes, a doubling of defence capability, and exit from the EU. It isn't going to happen any time soon. All of that is utterly impossible because of the shambles created by ZaNuLab. We are all going to have to forget about our aspirations for a time to get out of the mess we're in. If we get elected and if we manage to pull the country out of the current disastrous circumstances then there is every chance once we've done that that the electorate will cut us the slack we need to achieve those aspirations. Until then I think we are going to have accept the slaughter of a few more sacred cows.
The upside is that once it becomes even more clear what an absolute shambles we are all in, and that the architect of most of that shambles is Gordon Brown - I think we will be in office for the next 50 years.

Andy

A sensible move from the Tories.

Britain's economy is fucked.

As seb says, there's three main issues for the economy - debt, public services and tax cuts (pick two). If you want to get elected, you can't slash public services. If you care about your country, you've got to reduce the debt. So tax cuts are off.

Questions of the Laffer curve are irrelevant when it comes to a tax like IHT. Income tax, on the other hand...

Doug

Good comment from Clarke. With the size and rate of debt accruing we'd look like idiots giving tax cuts that would only pile more debt on to already huge debts.

This comment and the 45p one fill me with more confidence that the Tories are going to govern in a serious manner unlike Brown who uses the government as just another department of the Labour party. As the markets see that the Tories are serious about getting on top of public finances then confidence will return and investment. Only when the ship of state has been righted can we get back to restructuring the government and offering lower taxes.

Ian

In the last few years the top earners have done very well, here we have seen FTSE Directors cranking up their salaries by 20, 30, 40% per annum, while the lower earners have seen their earning power undermined by mass immigration. For the top earners to cry poor and say they will be disincentivised by an increase in the top income tax rate seems a rather a sick line of argument.

Rex Burr

How would even the Tories explain to voters on the basic wage, who will be loosing jobs and services, that it is a good idea to give a helping hand the very wealthy?

Screwtape

More ammo from "the Shadow Shadow Chancellor" for Gordon at PMQs. As The Mouth apparently doesn't much like tax incentives for marriage, I wonder which TV show he'll pick to announce that is merely another aspirational policy.

LD

I don't get all the criticisms about DC being unwilling to reverse the proposed higher rate of tax or now the inheritance tax cut. There is NO money. Carping on about it is just going to give "ordinary" voters a stronger impression that the tories and their supporters are out for the rich. Regardless of who wins the next election, it looks like these things are now going to happen, but with the tories not directly opposing these tax changes there's a better chance of "ordinary" electors abandoning brown and giving us a chance; as they'll now see that we're trying to spread the pain a bit more.

Surely its better to have the tories in and paying this tax, than sticking with brown et al for another 5 years - please consider the bigger picture.

Stanley, Uk

My God this really is much a do about nothing. Over in the States die hard Republicans are supporting a 90% tax on bonuses (they know which way the wind is blowing)and over here we're arguing the toss about an extra 5% that's neither here nor there. I wish right wing bloggers would realise perception is reality. If the Tories are seen to be the party of the rich they won't get elected because the majority of the people are not rich. Simples!

JONNY

There is no money.
There is no money.
There is no money.
There is no money.
Got it?

Susan Hill

@jon. Too right, A S African billionaire is buying up half my village - won`t live here of course. And prices have not dropped much in this area either.

Trevors Den

Every single tax policy the Tories had must be in complete shreds now. Have you seen the state of the nations finances.

One possibility is to raise thresholds year on year rather than at one go.

I don't see what options we have when we are in so much debt. The problem we have now is that even the tax rises hinted at by Labour will tend to stifle any recovery.

And as for the budget - well unless there is real transparency about the basis of debt figures, we really will have to just treat them as a starter for 10.

It maybe that tax cuts to jump start the economy and growth will eventually be the right thing to do, but right now with the level of debt - just getting spending and debt under control will be a massive task.

Athesius the Facilitator

But they did say that this was a funded tax cut from the start didn't they? to my ears it doesn't seem garbled at all. C'mon give these lot a break, they are not in power it's the Labour lot that sound garbled to me.

Hysteria

@ Bernalap "The upside is that once it becomes even more clear what an absolute shambles we are all in, and that the architect of most of that shambles is Gordon Brown - I think we will be in office for the next 50 years."

I think this is one of the biggest and most significant issues on the political side of the debate (the econimic issues are secondary at this point - this is about politics and positioning)

We have the ideal chance here to put Socialism in the UK to the sword - the key aim of the Tory party in the next 12 months is to get it into the public conscience, and have it accepted as a permanent truth, that Labour and it's policies got us into this mess and must be destroyed as a concept in the body politic.

Johnny Come Lately.

Let us get real. The way we are going there will be nothing for anyone to inherit anyway!

We have got to get the finances FOR EVERYBODY back to a sane level, Then inheritance taxation could be looked at. As should Old Age Pensions etc

BUT, I would prefer Cameron to come out and boldly state that he wants to ensure this Country does not end up like Zimbabwe! Be honest.

Kenneth Clarke IS the man for Chancellor with John Redwood as his number two.

Osborne should be Chairman and kept in wraps!!

Richard in the West Midlands

If increased taxation has either directly or indirectly contributed to the current economic crisis by reducing incentives to save, invest and work hard, then part of the solution to getting the econmy working again must be a selective reduction in taxation that is damaging. This must be done without delay. Pure and simple.

THX1138

Tories can't have it both ways, Dave has made great political capital out of how in debt we're in- fair enough. The debt has got to be paid back, so how's going to be done? Spending cuts & tax rises, how else. Dave is not going to be able to dodge this as we get closer to the GE.

None of that BS about needing to see the books, Dave keeps banging on about how bad the books when it suits him and how he wants to honest with us about “tough choices”.

Well I'm ready to face to face up to those "tough choices" what taxes are going up and what spending is going down- let the debate begin.

I think along with Matthew Parris and Micheal Portillo that we should scrap Trident 25 billion saved, an axe through Government IT projects billons to be saved and we're going to have to raise income tax. I don't agree with rasing the Inheritance tax threshold, best time to tax someone is when their dead (what do I care I'm dead) and it stifles innovation when the kids get loads of money for doing nothing.

Verity

LD - Because some of us take the attitude of "a plague on both their houses". Nothing better is going to happen under Cameron, who declared himself "the heir to Blair" and commanded the Tories to give a standing ovation to the man who had destroyed our laws, our Second Chamber, our institutions, our civil society and our Bill of Rights.

He is in the same programme, with tiny tweaks - I think because he is historically illiterate. That's why he came up with all those daft pr ideas that no one related to in the context of politics.

Hysteria, I agree, we have the opportunity to put the foul socialists to the sword - but socialist-lite Cameron is not the person to do it. It has been clear since he won the leadership election that he doesn't understand the issues. He sees principles as little bumps and barriers that have to be overcome with public relations exercises.

Verity

Number Plate, may I be among the first 100 people to note how stupid and needy you are?

You write: "Well I'm ready to face to face up to those "tough choices". So what? You're not in power and you never will be. Who the hell cares what you're ready to face up to?

Here's a daft part of your stupid, self-regarding post: "I think along with Matthew Parris and Micheal Portillo that we should scrap Trident 25 billion saved, an axe through Government IT projects billons to be saved and we're going to have to raise income tax" blah blah blah blah.

You're no Michael Portillo.

You're no Matthew Parris.

Fergus Pickering

Principles, principles, we must have principles! But all the politcians worth a damn, including the divine Margaret, are/were essentially pragmatic. That is what politicians do. They do what they can. Himmler had principles, mostly to do with Aryan purity. Michael Foot went on about principles for days at a stretch. I want a government that looks at the mess and decides how best to clean it up. Anyway, I've never understood what Consevative principles ARE. They seem at the moment to be something to do with not shoving an extra 5% of income tax on incomes of over £150,000. A bonfire of such principles would be a good idea.

JONNY

'but socialist-lite Cameron is not the person to do it'

You have a problem here.
Cameron was democratically elected by a two-thirds majority about three years ago.
If he stood again today , it would probably be unanimous.
That's Democracy, Verity.
If you don't like it here for Godsake move off to some quirky corner of the political underworld and leave us alone to fight with Cameron and get rid of Brown.

LiverpoolTory

Verity - we have the opportunity to put the foul socialists to the sword - but socialist-lite Cameron is not the person to do it.

Then who is the person to do it Verity? Nigel Farage? Nick Griffen? You say you're a true Tory but will vote Labour so Cameron will lose and a 'real' Tory party will emerge. Get Real! Presumably you never voted for Heath as he took us into the Common Market, or Thatcher who passed the Single European Act or Major who signed the Maastricht treaty. Come to think of it, have ever voted Tory?

David Ossitt

Hysteria.

Have it accepted as a permanent truth, that Labour and it's policies got us into this mess and must be destroyed as a concept in the body politic.

Absolutely right.

THX1138.

Inheritance tax is the worst of taxes; the very rich can get round it, the poor never pay it.

Paul B

Irwin Stelzer in the good old Speccie wrote in support of IHT about 18 months ago, making ng more or a less the same point that THX makes, that IHT inhibits growth & go get.

Read the article yourselves on the following link

http://tinyurl.com/ctqxcn

Paul B

I should correct myself , Stelzer argues its not IHT that inhibits go get, but rather inheritance. He makes a persuasive point imo.

THX1138

Paul B - How weird I just posted exactly that link.

BTW I'm a Gooner through & through got my Porto's confused with my Villarreal's