UKIP is to reverse its policy on the abolition of inheritance tax in order to address a more urgent priority for the economy, public sector pay.
£5.2 billion of the Brexit dividend UKIP had earmarked to abolish inheritance tax would now be used to end the decade long near-freeze on public sector pay. UKIP would lift the 1% cap the Conservative Government is now imposing for a further four years following George Osborne’s budget.
UKIP's policy would mean that over five million teachers, nurses and other public sector workers in the UK, many of whom are taking home less pay than in 2010, would find themselves better off.
Review bodies and public employers would be free to give needed pay rises. The £5 billion extra cost would be met by money saved from leaving the EU and would allow either 2% annual rises over the Parliament, or a one-off 5% rise over the government's 1% policy. Public employees earning over £50,000 would be excluded from this policy change.
The benefits of this policy, announced by Mark Reckless, UKIP's Economics Spokesman, would particularly benefit less well-off areas of the U.K. with higher public employment, e.g. Wales where 21.4% of people are working in the public sector, compared with 16.1% average in England.
UKIP believes that all of Britain, including hard working public servants, deserves a pay rise.