THE TUC is warning that raising the £1 million inheritance tax threshold would be “reckless in the extreme” after new polling found that just one person in five supports the idea.

Prime Minister Rishi Sunak is expected to include a pledge to reduce the scope of the wealth tax in the Conservative Party’s next election manifesto, potentially leading to its complete elimination.

But a TUC survey published today found that six in 10 people are against increasing the £1 million threshold for married couples, including 61 per cent of those who voted Tory in 2019.

Just a fifth felt that the threshold should be higher.

The Opinium survey also revealed that nearly a third of the public who expect to benefit from an inheritance anticipate that they will have to pay the tax, although this is true of just 4 per cent of all estates.

It comes after the Institute of Fiscal Studies estimated that the wealthiest 1 per cent would receive half of the benefit of scrapping inheritance tax, gaining an average tax cut of £1m.

Citing Office for Budget Responsibility estimates, TUC general secretary Paul Nowak said: “Nothing works in this country anymore.

“But instead of getting on with fixing our public services, the Conservatives are considering a tax giveaway to millionaires.

“Abolishing inheritance tax would be a huge tax cut for a very small, very wealthy minority — and drain £7 billion from the public purse each year.

“Slashing it would be reckless in the extreme and an act of levelling down.

“It’s no surprise that a clear majority of the public oppose lower inheritance tax thresholds and instead want the wealthiest to pay their fair share.”

Currently, most married couples can leave up to £1m in assets and wealth to their children without losing 40 per cent of it to inheritance tax.

For single people, the threshold is £325,000, with an extra £175,000 allowance for a main residence if it is passed onto children or grandchildren.

Mr Nowak added:  “At a time when our NHS is on its knees, school buildings are crumbling and runaway inequality is blighting every corner of the country, the last thing we need is an unfunded tax cut for the wealthiest.”

Positive Money UK’s head of campaigns Hannah Dewhirst told the Morning Star: “For a government claiming not to have any money for fixing crumbling schools or paying healthcare professionals a decent wage, it would be a slap in the face to workers if they cut taxes on wealth.

“The very fact that they’re considering this demonstrates just how false their claims about the public purse are. Anything we need, we can afford; it’s just a matter of political will.

“We need taxes to increase on the wealthiest in society, not go down, to help pay for long overdue improvements to our schools, public transport and hospitals. The government can start with a windfall tax on bank profits, which have soared thanks to rising interest rates.”