Chancellor Rachel Reeves faces mounting criticism over potential inheritance tax reforms with Conservative MP Andrew Griffith stating that this could destroy incentives for success.

The Treasury is reportedly exploring significant changes to inheritance tax rules as ministers grapple with a £50billion fiscal shortfall.

Former Treasury Minister Andrew Griffith condemned the proposals whilst talking to GB News and said: "I think it's a terrible idea. I abhor inheritance tax anyway it undermines people's incentives.

Andrew Griffith said it is 'basic human instinct' to do well

"It goes against the basic human instinct to want to do well for yourself and provide for your future.

"Remember, a lot of inheritance tax is paid by people in the unfortunate situation of an early, unplanned death, where a family has lost a breadwinner and has to support themselves. It's a terrible tax in general."

The shadow minister particularly criticised the timing, noting the Chancellor had "already killed the economy, driven up unemployment, and presided over the biggest brain drain our country has ever seen."

Mr Griffith added: "What I don't understand with something like this is, if it were to happen and it does look pretty likely what impact there would be on the economy in the short term.

"If this was brought in towards the end of the year, wouldn't people who are able to gift under the seven-year rule just do it now? You'd see a huge movement of money, wouldn't you?

"And I think probably a lot of people are doing that already just as a lot more people will be looking at moving overseas.

"On the day our wonderful young people celebrate their exam results, I want to see a British economy full of opportunity for them.

"What I don't want is to send a message that unemployment is rising, people are not hiring graduates or school leavers at the same rate and this socialist Government doesn't understand or support your ambition to make something of yourself in life."

Policing minister Dame Diana Johnson declined to dismiss inheritance tax changes when questioned yesterday morning, saying only that the Chancellor would "make her announcements" in the autumn Budget.

Her evasive response prompted Shadow Chancellor Mel Stride to declare: "The mask has slipped. Labour is coming for your family's future to fund their failure - and they won't stop at inheritance tax."

He accused the Government of pursuing "the politics of envy" and warned that "those who've worked hard, saved responsibly and hope to leave something behind shouldn't be punished to pay for Labour's economic black hole."

Rachel Reeves could be looking at another inheritance tax grab

Treasury officials are reportedly evaluating restrictions on asset gifting to address the Government's financial challenges, according to sources cited by the Guardian.

The National Institute of Economic and Social Research has calculated that the Chancellor must secure £50billion through increased taxation or reduced spending to achieve fiscal balance by the decade's end.

The think tank characterised this as an "impossible" decision between two unpalatable options.

Beyond inheritance tax modifications, ministers are reportedly considering raising capital gains tax rates and implementing additional indirect levies on goods and services.

The current inheritance tax system generates approximately £7billion annually, affecting roughly four per cent of estates. The levy applies at 40 per cent on estate values exceeding £325,000.