Badenoch says Tories would scrap inheritance tax on family homes

Conservative Party leader Kemi Badenoch used her keynote address at the party’s Birmingham conference to promise the abolition of inheritance tax (IHT) on family homes and to allow couples to pass on an extra £1 million tax‑free, pledging that a future Conservative government would enact the change “as soon as we can afford it”. She framed the policy as a correction of a tax that now burdens “ordinary middle‑class families” rather than the “super‑wealthy”, noting that under current rules estates above £325,000 (or £500,000 when a home is left to children or grandchildren) face a 40 percent charge and that only 4.72 % of deaths in 2023‑24 triggered an IHT bill, raising about £7 billion. Badenoch estimated the proposed reforms would cost roughly £6 billion a year, but argued the Conservatives have identified £71 billion of savings elsewhere, including cuts to welfare, defence, prisons and the economy, to fund the initiative.

The inheritance‑tax proposal has ignited sharp criticism from rival parties, who argue it primarily benefits wealthier households. Labour chair Bridget Phillipson dismissed the pledge as evidence the Tories have not changed, accusing them of favouring the affluent while ordinary families struggle with social‑care costs. Reform UK’s Robert Jenrick, a former Tory MP, labelled Badenoch’s plan a “handout to multi‑millionaires” and contrasted it with his party’s offer of a £500 tax cut for everyone via a higher personal allowance. The policy’s cost and its reliance on identified savings have become focal points in the broader debate over the party’s fiscal priorities as it seeks to recover from its historic 2024 general‑election defeat and close the polling gap with Labour and Reform.

Beyond the tax pledge, Badenoch’s speech sought to rebrand the Conservatives as a “no‑drama, no‑nonsense” party, distancing themselves from Reform UK and mocking Prime Minister Andy Burnham as a “Paddington Bear” figure. She invoked the revival of Marks & Spencer as a model for the party’s own renewal, emphasizing the need to win back trust and “fix” the perception that voters are merely “looking through the shop window”. While she ruled out an electoral pact with Reform, she appealed to its supporters, calling them “our people” and promising higher standards of character and conduct. The speech concluded with references to other Conservative initiatives, including a £10 billion anti‑missile defence system and plans for 50,000 new prison places, signalling a broader agenda aimed at reshaping the party’s image and policy platform ahead of the next election.

⚡ Effects Interpreter