Aug 21 2006
Former transport secretary Stephen Byers has called for inheritance tax (IHT) to be abolished.
In an article in the Sunday Telegraph, the MP and ally of Tony Blair, described IHT as "a penalty on hard work, thrift and enterprise".
He also called on the prime minister's successor to scrap the tax saying it would keep Labour in touch with the middle classes.
Last year the Treasury earned £3.3 billion from IHT and the number of estates hit by the tax soared from 18,000 in 1997 to 37,000 in 2005.
However, trade secretary Alistair Darling, considered an ally of Gordon Brown, has spoken out to counter Mr Byers's statement.
He said: "It may make for a headline, but I don't think it makes for a prudent tax-and- spend policy.
"Anyone who wants to abolish it needs to explain exactly how they plan to fund the £3.6 billion cost."
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