Leftists: Bring back the 'death tax'

A Snake is Always a Snake

A Labour grandee has called on the party to readopt the so-called “death tax” on homes to pay for social care.

David Blunkett, the former Home Secretary, questioned why was it fair that children of rich pensioners “win the lottery” by inheriting the family home when they die.

He said houses in London and the South East had boomed in price and suggested the profits from such rises should be taxed to help pay for social care in the North.

Labour was forced to abandon plans for a 10 per cent levy on estates to pay for social care before the 2010 general election following a wave of criticism.

However speaking at a Policy Exchange event in London, the former Labour frontbencher under Tony Blair said he supported bringing back the policy reports The Telegraph.

“I'm also interested in a much more refined, properly monitored equity release scheme because I think those who have got considerable capital assets – and certainly in London and south east because of property prices they have – [should do more].”

“Let me be really controversial: Why should their sons and daughters or nephews and nieces win the lottery when they die?

"Because that's what it amounts to compared with people in the rented sector and particularly in low terraced housing, even if they own it, in the North and Midlands.”

Pushed on whether he was referring to the “death tax” – the characteristic Tories gave such a policy before the 2010 election – Mr Blunkett said “yes".