Inheritance Tax

Neil Shastri-Hurst Excerpts

Wednesday 14th October 2026 Commons Chamber

[Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)]

One of the liberating elements of speaking at this stage of the debate is that many excellent and eminently sensible points have already been made, so I can do an assorted highlights of the best bits that have come out of it. But it has made me reflect that perhaps if we all took a stroll down to Clapham, got on the omnibus, and spoke to the man and woman who had boarded it, I suspect that their vision of this country would not be the same as the purported utopia that we have heard from those on the Government Benches today. I suspect that if we asked people what they want to see from the tax system, they would want to see something that is not unnecessarily detrimental to a single group and not punitive in its intent. Fundamentally, it should not be something that disincentivises those who have done the right thing.

Looking at the tax landscape in this country, it has become far too complicated and burdensome—we are now at more than 20,000 pages of tax codes, whereas in 1997 there were fewer than 5,000.

[Dr Arthur]

I have never been on the Clapham omnibus, but I expect that there may well be people in low-paid jobs on that who are struggling with the cost of living crisis. When the hon. Gentleman speaks to people on the omnibus, do they tell him that they want people who inherit properties worth half a million pounds or more to pay less tax? Is that the answer to the problems facing people on the Clapham omnibus? Is that what they are saying?

[Dr Shastri-Hurst]

I recommend that the hon. Gentleman get on the Clapham omnibus, because it is a great opportunity to have his finger on the pulse of the British public. I think most will say that they want a fair system so that when they have worked, strived and built up a legacy for the next generation, they have something to hand down, because that is the most loving thing that people can do. I have not built up a family business or run a family farm, and I cannot imagine the stresses and strains that that involves, but these individuals understandably want to hand their businesses down to the next generation. We need them to do so, because if we do not have the farmers of tomorrow and the generation after that, we will not have on our tables the food that we enjoy today and that we hope our children will enjoy in years to come.

[Daisy Cooper]

Was the hon. Gentleman sticking up for farmers when his party negotiated trade deals with Australia and New Zealand, which undermined farmers in the UK?

[Dr Shastri-Hurst]

I fundamentally do not agree with the hon. Lady’s point, and I suspect that farmers in this country will be wondering why her party has not stood up for farmers over fertilisers today.

[Sir Ashley Fox]

Perhaps it is a leadership bid.

[Dr Shastri-Hurst]

From a sedentary position, my hon. Friend makes a very valid point.

Let us not kid ourselves: this debate has been framed as though we have some sort of Dickensian model of the idle rich and then the poor who are propping up the state. That is not the truth. The reality is that, as my hon. Friends have said, those who are very rich will inevitably put their affairs into trusts and escape inheritance tax. We are talking about those who are just about managing: those who are trying to earn a crust and to support their families. It is the middle class who get caught—those who go out to work every day to provide for their families.

The average property price in my constituency of Solihull West and Shirley is now £345,000. Such properties are owned not by the toffs who are often derided by those on the Labour Benches, but by people who get up every morning and often work more than one job to provide for their families. People have tripped into paying inheritance tax by virtue of property prices being pushed up and the threshold remaining the same. The reality is that this tax is not operating as it was intended. It is not capturing the individuals it was intended to capture; it is capturing the ordinary man and woman. The fact that the Government have frozen the threshold until 2031—a threshold that was first put in place in 2009—means that, whereas only 4% of deaths were captured by this particular tax between 2001 and 2024, 9.5% of deaths will be captured by 2030.

When we compare ourselves with other OECD nations, we see that 18 of those 38 nations do not pay any inheritance tax at all—Australia, Canada and New Zealand among them—and none of the remaining 20 has it at such a punitive rate as we have here. The purpose of a tax system is of course to help fund our public services, but it also has to be fair, sensible and aspirational in its intent. It must ensure that those who strive and work hard are not penalised as a consequence, and I am afraid that this Government’s direction of travel is simply taking out those that do work hard—our family farms, our family businesses and others—by the knee.