Tories pressure Labour to take an axe to public spending to fund major cut to 'immoral' inheritance tax

The Conservatives will seek to heap fresh pressure on Andy Burnham to cut public spending in order to fund a major reduction in inheritance tax. Shadow chancellor Andrew Griffith branded the levy on estates 'immoral' ahead of a Commons vote on party plans to exempt family homes, businesses and farms from death duty. The Tories will use an opposition day debate tomorrow to draw a line in the sand on the issue as they seek to take the fight to Labour ahead of the Budget later this month. It is also being seen as an attempt to reverse gains by the Liberal Democrats in affluent southern seats at the 2024 election. Leader Kemi Badenoch used the party conference last week to introduce the IHT pledge, which would also raise the threshold for death duties to £500,000 if the Tories win power. Mr Griffith said: 'People work hard all their lives to leave the best possible legacy for their children, and a key part of that is their family home. 'Inheritance Tax is an immoral tax which punishes people for doing just that.' Shadow chancellor Andrew Griffith branded the levy on estates 'immoral' ahead of a Commons vote on party plans to exempt family homes, businesses and farms 'That is why we have pledged to scrap Inheritance Tax on the family home and reverse Labour's cruel family farm and family business taxes too. 'And to do it, we have set out plans to save billions of pounds by reducing spending, including getting the ballooning welfare bill under control. 'MPs of all parties now have the chance to back hard-working families by supporting our motion.' Mrs Badenoch used a tubthumping leaders' speech in Birmingham to vow the next election will be a 'battle for the soul of the nation' as she promised her party would focus on letting people 'keep more of what they earn' if returned to office. Party officials say the move would be funded by measures including the reintroduction of the two-child benefit cap and cuts to out-of-work welfare payments and universal credit. Mrs Badenoch said it would mean the number of families paying inheritance tax would fall by more than half, and couples could leave behind an additional £1million tax-free. The existing levy is charged on the value of estates above £325,000, with the nil-rate band rising to £500,000 for those who leave their main home to direct descendants. According to Conservative analysis, the plans would cost around £6billion as of the 2029-30 financial year. It also wants to reverse the move to levy IHT on farmland. Former chancellor Rachel Reeves announced the Government would levy inheritance tax on family farms in the party’s first budget in 2024. However, plans for the tax were watered down in December last year following a vocal campaign by farmers including Jeremy Clarkson and internal pressure from some of Labour’s rural MPs. Shadow environment secretary Victoria Atkins said: 'Labour have been waging war on rural communities ever since they came to office. 'Their family farm tax is an ideological attack on the people who have been producing our country's food for generations. 'Like Labour's family business tax and Inheritance Tax on the family home, the family farm tax must go. 'Labour MPs in rural areas have the choice of voting with us for their constituents or against them. If Labour doesn't axe this vindictive tax in full, we will when we're back in government.'