Roger Williams, the MP for Brecon and Radnorshire and Liberal Democrat Shadow Secretary of State for Wales, has today said that Conservative plans to increase the inheritance tax threshold shows they are only committed helping to the wealthiest few.

Mr Williams accused the Conservatives of helping their party’s wealthy donors at the expense of ordinary working people.

The Conservatives have said that they would increase the inheritance tax allowance to £1 million per person. Because the threshold would be transferable this would mean that a married couple would pay no inheritance tax on anything up to £2 million.

But figures revealed through a Parliamentary Question have shown the full extent of the damage the Tory’s proposals would do to the country’s finances.

The Conservative’s plans would cost the Treasury an estimated £500 million in 2010-11 and up to £1.5 billion in 2013-14 with over half the benefit of the change going to the richest 3000 people in the UK.

Commenting Mr Williams said:

“The Tory party are eager to tell us they believe in building a fairer society, yet these figures clearly show the damage they would do while seeking to help only a tiny minority of the richest people in the UK.

“Instead of looking at ways they could help lift the burden of our unfair tax system on the poorest in our society, they are focusing all their energy on ensuring that bankers and other multimillionaires can keep their fortunes.

“While the Tories choose the wealthy few over the majority of everyday people, the Liberal Democrats want to place a tax on mansions worth over £2 million.

“We believe tax should be based on your ability to pay tax.

“If the Conservative’s really believed in a fair society they would realise just how grotesque it is to be helping the richest 3000 people while millions of others suffer the effects the financial crisis.”

NOTES:

The Parliamentary Question revealing the Treasury figures can be found at: http://www.publications.parliament.uk/pa/ld200809/ldhansrd/text/91020w0002.htm#09102051000146

Agricultural land and small businesses already attract inheritance tax relief.

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