Reform UK has ruled out scrapping inheritance tax, distancing itself from a policy reportedly under consideration by the Conservatives, and accused Kemi Badenoch's party of being "out of touch" for weighing it up. Robert Jenrick, Reform's chosen Chancellor, said the 40 per cent levy was "unfair" and unpopular but insisted axing it would be "morally wrong" during a cost of living crisis, as it would primarily benefit wealthy households. The row highlights a growing dividing line between the two right-of-centre parties over who their tax policies are designed to help.

Inheritance tax, paid on estates over £325,000, currently applies to roughly 30,000 estates a year. Jenrick argued that while the tax causes "damage" to family farms and businesses, Reform's priority instead is raising the personal income tax allowance so workers earning under £15,000 and pensioners pay no income tax. He contrasted this with a possible Tory move to abolish inheritance tax, which he suggested echoed a similar unfulfilled 2007 pledge by George Osborne, and cast the debate as a choice between backing "the wealthy" or "the workers". Conservative sources said any decision on inheritance tax remains under discussion and would only be confirmed once fully costed, likely at the party's conference next month.