Ukip U-turns on IHT abolition

Nigel Farage Ukip leader 2013 700 x 450.jpg

Ukip has dropped plans to abolish inheritance tax in favour of offering increased wages for public sector workers.

Speaking at the party’s annual conference in Doncaster today, recently appointed economics spokesman Mark Reckless said Ukip would no longer campaign for money saved from a European Union exit to fund the end of IHT.

Reckless, who lost his seat in Parliament at the 2015 election, said the Government is unfairly targeting public sector workers.

He said: “If public sector pay rises at that 1 per cent a year, or barely 5 per cent over the Parliament, then the Office for Budget Responsibility forecast implies that private sector pay will increase by 25 per cent over the same period.

“5 per cent v 25 per cent. How can that be fair? How could we recruit and retain the quality staff we need for our public services? Why do the Conservatives so dislike people who work in the public sector? And who will defend those public servants when Labour is riven by extremism and division?”

Ukip estimates that £55m a day is contributed to the EU, and would represent a potential “Brexit dividend” in the case of an exit.

Of that sum, Reckless said £5bn previously budgeted to abolish inheritance tax would now be used for salary increases for public sector workers, equating to 2 per cent per year.

He said: “If Britain votes for Brexit next year then that money will be available for the NHS, it will be available for tax cuts, and it will be available to give people in the public sector a long overdue pay rise.

“When we vote to leave the EU we will not only be more than a star on someone else’s flag. We will be prosperous, democratic and free.”