Kemi Badenoch vows to axe inheritance tax on family homes

Conservative leader Kemi Badenoch has used her party conference speech to unveil a sweeping package of tax cuts, pledging to abolish inheritance tax on family homes and scrap stamp duty if the Conservatives win the next general election. Speaking as the party attempts to position itself as a credible alternative to the governing Labour administration, Mrs Badenoch told activists in Birmingham and Manchester that hard-working citizens should be permitted to pass down their wealth without heavy state interference.

According to reporting from the Express, Mrs Badenoch stated that inheritance tax was originally intended to target the super wealthy rather than middle-class families across the country. Under the proposed measures, every inheritance tax bill would be reduced, and the total number of families paying the levy would fall by more than half. The Metro reported that the Tory leader expressed an ultimate ambition to abolish inheritance tax entirely, though she acknowledged she could not commit to that immediately without disrupting other spending priorities. The Trades Union Conference quickly condemned the announcement, arguing it demonstrated that the Conservatives prioritize inherited wealth over ordinary workers.

Media additions

@thesunpolitics | Conservative leader Kemi Badenoch and the ...

Alongside inheritance tax reforms, Mrs Badenoch revived a proposal to abolish stamp duty on primary residences, a policy first highlighted by The Independent. Describing stamp duty as a bad tax that paralyzes social mobility, she argued that a society where people cannot afford to buy or move homes is one where mobility is stifled. The Conservatives estimated that scrapping stamp duty would cost £9 billion, funded through a projected £47 billion pot of savings derived from welfare reductions, civil service downsizing, and foreign aid cuts. However, the Institute for Fiscal Studies (IFS) estimated the cost of abolishing primary residence stamp duty at £4.5 billion.

Reaction to the housing and tax announcements was sharply divided. Tom Bill, head of UK residential research at estate agents Knight Frank, told The Independent that the stamp duty abolition would be warmly welcomed by buyers and sellers alike. The Home Owners Alliance praised the move as a vote winner. Conversely, Theo Bertram of the Social Market Foundation cautioned that the policy would disproportionately benefit homeowners in London and the Southeast. Former government economist Jonathan Portes dismissed the funding strategy as laughable, asserting that the party lacked a credible plan to cover the revenue shortfalls.

The BBC reported on a separate military tax incentive announced during the conference, which would make the first 30 days of service for military reservists tax-free as part of a push to expand the reserve forces to 50,000 personnel. Defence Minister Luke Pollard criticised the proposals, claiming the Tories left recruitment in crisis during their previous time in government.

These policy announcements arrive as the Conservatives navigate broader cost of living pressures and political competition from Reform UK. As debates continue over public spending, welfare reform, and fiscal responsibility, voters and economic analysts will closely watch how the party intends to balance its sweeping tax-cutting ambitions against the realities of the national deficit ahead of the next general election campaign.