Tory tax priorities: spend £6 billion on the wealthiest 0.8% in the UK

by Stephen Tall on May 2, 2010

Small wonder that Tory leader David Cameron publicly rowed back on his inheritaance tax cut for millionaires in last week’s televised debate – Lib Dem research released today shows the Tories’ promise would:

  • cost £6bn over the course of the next Parliament;
  • is aimed at the wealthiest 0.8% of estates in the UK; and
  • would benefit 3,000 of the wealthiest estates in the country every year by almost £250,000

As Vince Cable points out:

At a time when the gap between the richest and poorest is so great, it beggars belief that David Cameron wants to give the wealthiest estates a £6bn give away. The Tories are showing where their priorities really lie.

“This tax pledge is grossly unfair, only helps the wealthiest households and costs £6bn at a time when the public finances are in a perilous state. A vote for David Cameron is not one for fairness and change. It’s a vote for more of the same.

“Only the Liberal Democrats are fully committed to creating a fair tax system. We are the only party that stands for fairness and not division.”

Not only will the Tories’ tax policies benefit only the richest, but – as the Institite for Fiscal Studies made clear last week – they are unaffordable. The IFS stated the Tories would have to reverse half their £6bn tax cuts because they their figures don’t add up.

In stark contrast to the Tories’ tax-cuts for millionaires, the Lib Dems propose a tax-cut which will benefit ordinary voters by lifting the income tax threshold to £10,000. The IFS confirmed last week that the Lib Dems’ tax plans, alone among the three major parties, added up.