Labour is facing pressure from within its own party to so-called “death tax” reform proposals to pay for social care costs, the Telegraph reports.
Ahead of the 2010 general election, Labour had considered imposing a 10 per cent tax on people’s estates when they die but abandoned the plans following a barrage of criticism.
However, in July last year shadow health secretary Andy Burnham reportedly told delegates at a Fabian Society event that he favoured a new estates tax and that Labour was holding “internal party discussions” on the proposals.
And according to reports, Labour party grandee and former home secretary David Blunkett told delegates at a Policy Exchange event in London he supports revisiting the policy.
He said: “I’m also interested in a much more refined, properly monitored equity release scheme because I think those who have got considerable capital assets – and certainly in London and south east because of property prices they have – [should do more].
“Let me be really controversial: Why should their sons and daughters or nephews and nieces win the lottery when they die?
“Because that’s what it amounts to compared with people in the rented sector and particularly in low terraced housing, even if they own it, in the North and Midlands.”
Asked whether he was referring to the death tax reforms, Blunkett reportedly responded: “Yes.”
“I think that it’s got a lot of merit – properly organised, properly regulated so it’s not fraudulent – where people could release some of the equity to pay for their care and still allow their offspring or their nieces and nephews to inherit a pretty good bung,” he added.