The Conservatives are indulging in fantasy economics

Finally it seems to be dawning on many Conservative MPs that abolishing – or seriously cutting – inheritance tax at the same time as jacking up income tax for millions of low earners is not a great way to tackle a strong Labour lead in the polls. Several backbenchers have written to the Prime Minister in response to reports that he is considering taking the axe to inheritance tax in the Budget on 6 March. They have suggested that the government should be cutting income tax instead, or at least raising the thresholds which have been frozen until 2028. At a time of elevated inflation, that is dragging millions more into income tax, and into the upper rates of income tax, by the year.

If and when we are to have tax cuts, another focus should be on National Insurance – which is really just income tax by another name, albeit one that targets only earned incomes, not income from investments.