Badenoch Pledges Inheritance Tax Cuts to Rebuild Conservative Base Amid Fierce Backlash

Conservative Party leader Kemi Badenoch has unveiled plans to abolish inheritance tax on family homes if elected, triggering sharp accusations from critics that the party is prioritising tax cuts for the wealthy. Speaking at the Conservative party conference in Birmingham, Badenoch also proposed allowing couples to pass on an additional £1m tax-free. The policy aims to appeal directly to affluent middle-class voters in traditional Tory strongholds across southern England who abandoned the party in the 2024 general election.

According to Badenoch, the reform would halve the number of families paying the levy, which currently applies to fewer than 5% of estates. She pledged to finance the measure through £70bn in identified spending savings, declaring: "My ambition is to abolish inheritance tax altogether, as soon as we can afford it." However, the proposals drew swift condemnation from advocacy groups and labour unions. Tax Justice UK labelled the policy a "reckless giveaway," while Trades Union Congress General Secretary Paul Nowak argued that cutting a tax paid exclusively by the wealthiest leaves ordinary working people to pick up the bill.

The announcement complements a broader suite of Tory proposals tailored to higher earners, including expanding childcare support to households earning over £100,000 and repealing the mansion tax. Housing experts and political opponents warned the tax changes could overheat the UK housing market and discourage elderly homeowners from downsizing. The measures also illustrate Badenoch's pivot toward core economic incentives in an effort to counter sluggish polling figures that remain below the party’s disastrous 2024 election defeat levels.

Beyond fiscal policy, Badenoch used her conference address to reject calls to form an alliance with Nigel Farage's Reform UK, arguing that such a pact would irrevocably damage the party's standards. While acknowledging that the Conservatives face a long and challenging road to recovery, she insisted economic growth would serve as the central organising principle of any future administration. Badenoch committed to cutting planning red tape, advancing major infrastructure projects like Heathrow's third runway, and repositioning the party as the credible, mainstream voice of the British right.