The Conservative Party will challenge the Government to rule out property tax rises in the autumn budget during a Commons vote on Wednesday. Shadow housing secretary Sir James Cleverly will lead an Opposition Day debate targeting speculation that Chancellor Rachel Reeves could scrap private residence relief from capital gains tax.
The Tories plan to force a vote calling on the Government not to impose capital gains tax on family homes and not to introduce annual property levies or higher council tax rates. They will also urge ministers to avoid implementing land value taxes or reducing inheritance tax thresholds, including potential changes to the seven-year gift rule.
Budget pressures intensify
The scale of the Chancellor's budget challenge was highlighted by NIESR economic think tank analysis last month showing Reeves faces a £41 billion shortfall. This gap relates to her commitment to balance day-to-day spending with tax receipts by 2029-30, leading to speculation about potential revenue-raising measures.
Reports suggest changes to inheritance tax are among measures under consideration. Current UK rules exempt gifts made more than seven years before death from inheritance tax liability.
Hospitality sector targeted
A second Conservative motion will condemn what the party describes as "catastrophic" decisions affecting hospitality businesses. The motion targets cuts to business rate relief and increases in employer national insurance contributions that have hit pubs, restaurants and hotels.
Sir James Cleverly said: "A family home is not a piggy bank for Labour to raid. Parents who want to help their children on to the housing ladder should be encouraged, not punished, and no household should face an annual levy simply for living in the home they've worked hard to build."
Shadow business secretary Andrew Griffith said Labour's policies were "driving Britain's pubs, restaurants and hotels to the wall", adding: "These choices will cost jobs and shut young and vulnerable people out of work." The Conservatives will urge ministers to publish a dedicated hospitality strategy and consult employers before future National Living Wage changes.
Government response
A Labour Party spokesperson defended the Government's approach, citing economic stabilisation efforts after "14 years of Tory failure and Liz Truss crashing the economy". They highlighted wage increases, interest rate cuts and plans to overhaul planning rules to support hospitality businesses.
Opposition Days allow the Conservative Party to select debate topics they want to keep in the public eye, though the motions face likely rejection given the Government's strong parliamentary majority.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
