No 10 'considers scrapping inheritance tax' in bid to save Tory seats

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Downing Street is reportedly holding talks on abolishing inheritance tax as part of a manifesto in a bid to win the next election.

No 10 is reportedly discussing whether to make the abolition of the levy a commitment to consolidate votes in so-called "blue wall" seats in 2025.

Supporters argue that politics could be a game-changer in the south of England where Tories are defending constituencies vulnerable to opposition party gains, according to the newspaper.

Rishi Sunak made the halving of the inflation by the end of the year one of his five key leadership ambitions, and Jeremy Hunt has signaled that goal will take priority over tax cuts.

The broader economic challenge facing the Chancellor and Prime Minister was illustrated by official figures showing the UK economy contracted in May.

As the party continues to trail Labor in the polls, The Times reported that the abolition of inheritance tax was seen as a manifesto promise, rather than a policy to be implemented next year.

"It is acts to be a country aspiration. You work hard, play hard, and pass on your wealth. It's a live discussion,” a source familiar with the discussions told the newspaper.

The inheritance tax rate is currently 40% for estates worth more than 325 £000, which is only charged on the part that is above the threshold.

But estates of spouses and civil partners can pass on up to £1 million without any inheritance tax .

Consumer price index inflation peaked at 11.1% last year and was last reported at 8.7% in May.

Abolishing inheritance tax could cost the Treasury a potential £7billion a year and would depend on that figure falling significantly, The Times reported.

A source no. 10 said: "The Prime Minister has said many times that he wants to cut taxes for citizens.

"As Conservatives, it's obvious we want people to keep a greater some of their own money. But the current economic situation means that...