'Inheritance tax must increase, this country is going backwards', says Corbyn supporter Aaron Bastani

'We must reduce rent, childcare costs and house prices', says the Institute of Economic Affairs

The Institute for Fiscal Studies says inequality will increase

Thursday, January 5, 2017

Inheritance tax must be increased as this country is not just standing still, it's going backwards, says a prominent Jeremy Corbyn supporter.

Aaron Bastani spoke to Sam Delaney after a study by the Institute for Fiscal Studies found that young people today are more likely to inherit wealth from their predecessors than previous generations, but this will be in favour of those who are already well off.

Bastani, co-founder of Novara Media, said: "I would personally increase [inheritance tax]. This country is not just standing still, its going backwards.

"We should reduce things like VAT and we should increase things like corporation tax and inheritance tax. People's earnings aren’t keeping up with the cost of housing."

Sam also spoke to Kate Andrews, news editor at the Institute of Economic Affairs, said: "The main reason behind people inheriting more in the future is going to be because of our distorted housing market, estates are just rising in value.

“If we really want to help the low paid the best things we can do is bring down rent cost and bring down childcare costs.

“[It's vital to] build more homes - not only does this drop housing pries and give more people an opportunity…it also devalues the estates that are being inherited now."

Listen to the full audio above