Sajid Javid hints the Tories could SLASH inheritance tax as the battle lines are drawn for snap election
- Sajid Javid has dropped heavy hint that he wants to slash inheritance taxes
- The Chancellor said finding ways to curb those death duties was ‘on his mind’
- The move could be another crowd-pleasing policy ahead of a looming election
Sajid Javid has hinted that he could slash inheritance tax as the Tories gear up for an election battle.
The Chancellor revealed that ways to curb death duties were ‘on his mind’ – suggesting a major overhaul is looming.
The move could be another crowd-pleasing policy as Boris Johnson draws battle lines for a national ballot.
Mr Javid has already loosened the purse strings to find more money for police, the NHS, and massive infrastructure investment.
Asked during a fringe event at the Conservative Party conference if he would consider getting rid of inheritance tax altogether, Mr Javid replied: ‘First of all, we’ve already made some sensible reforms in that tax.
‘But I hear what you’re saying – you’re not the only one – and I shouldn’t say too much now but I understand the arguments against that tax…
At a Tory conference fringe event tonight, Chancellor Sajid Javid (pictured) revealed that ways to curb death duties were ‘on his mind’ – suggesting a major overhaul is looming
‘You pay taxes already through work or through investments and your capital gains in other taxes, there is a real issue with then asking them to, on that income, to pay taxes all over again.
‘Sensible changes have already been made but it’s something that’s on my mind.’
Mr Javid, who was speaking at an Institute of Economic Affairs fringe event at the Manchester conference, also confirmed that there would be a Budget before the end of the year.
Inheritance tax is currently paid at a rate of 40 per cent for the value of an estate that is above £325,000.
However, couples can double that tax-free level to £650,000, as surviving spouses effectively inherit the allowance along with the estate.
Scrapping the tax would be costly, as it raised £5.3billion for the Treasury last year.
However, it is hated by Tories – and considered deeply unpopular with home owners whose estates increasingly face being caught by the duty.
In his keynote speech to conference yesterday, Mr Javid pledged to increase the National Living Wage to more than £10 per hour, and also said he would lower the age at which people are eligible to be paid it.
At the moment everyone aged 25 and over must be paid £8.21 but the Chancellor said he wanted that to rise to up to £10.50 by 2024.
The age limit will be slashed to include people aged 21 or over as he made a pitch to younger voters ahead of the next general election.
He told Tory activists in Manchester: ‘Over the next five years, we will make the UK one of the first major economies in the world to end low pay altogether.
‘To do that, I am setting a new target for the National Living Wage: Raising it to match two-thirds of median earnings.
The move could be another crowd-pleasing policy as Boris Johnson (pictured at conference today) draws battle lines for an election
‘That means, on current forecasts, this ambitious plan will bring the National Living Wage up to £10.50, giving four million people a well-earned pay rise.’
Mr Javid said lowering the age threshold to 21 and over would ‘reward the hard work of millennials’.
The move was a bold attempt to outflank Labour which has promised to increase the wage to £10 if it wins power and to extend it to all workers – including those under the age of 18.
Treasury officials were unable to say exactly how much the policy will cost the public or private sector.
They estimated that the four million people who stand to benefit will do so by an average of £4,000.