A Conservative policy group, led by former cabinet minister John Redwood, has told the Tories that they should abolish inheritance tax if they come to power.

The think tank argued that that rising property prices meant estates of people 'who could not in any sense be described as rich' are now above the £300,000 payment threshold, the BBC reports.

Redwood's group also called for a reduction in business tax rates to spur competition. Large business tax should be cut from 30% to 25% and small businesses should only pay 20% tax.

The recommendations of the policy group are not binding, but shadow chancellor George Osborne said the Tories would consider all the proposals seriously.

Further reading:

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