#InheritanceTax

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Opinion: Universal inheritance tax proposal would face strong public opposition, argues TaxPayers' Alliance chief

This opinion article by John O'Connell, chief executive of the TaxPayers' Alliance, argues that a proposal previously associated with Prime Minister Andy Burnham to introduce a flat 10% inheritance tax on all estates would be economically damaging and politically unpopular. The author contends that such a measure would represent a significant expansion of inheritance taxation and would affect many ordinary families who have accumulated assets over their lifetimes with the intention of passing them on to future generations. He also criticises reported discussions about removing the capital gains tax uplift on inherited assets, arguing that the combined effect could force beneficiaries to sell inherited homes in order to meet tax liabilities. Beyond inheritance taxation, the article claims that the UK is already experiencing its highest tax burden since the Second World War while government spending continues to rise. O'Connell attributes much of the country's fiscal pressure to increasing welfare expenditure, particularly sickness and disability benefits, and argues that successive governments have failed to address these costs effectively. He cites TaxPayers' Alliance research suggesting that more people will be drawn into higher income tax bands through fiscal drag, while welfare spending continues to expand. The article concludes that increasing taxes further to finance new public services, including a proposed national care service, would worsen Britain's economic position. Overall, the piece presents the author's view that higher taxation, growing public expenditure and insufficient welfare reform risk creating an unsustainable fiscal cycle and could provoke a significant political backlash against the government.