Kemi Badenoch: Tory leader pitches inheritance tax cut in policy shift

The plan for inheritance tax

Kemi Badenoch has laid out a fresh roadmap for the Conservative party, and it’s giving major 'we want our old voters back' energy. During her speech at the Conservative party conference in Birmingham, the Tory leader announced plans to abolish inheritance tax on family homes if the party wins the next election. She also suggested allowing couples to leave an additional £1m tax-free to their families.

The math? The party claims they’ve found £70bn in savings to fund the policy. Badenoch argued that hard work should be rewarded, promising, "no stamp duty when you buy your home, no mansion tax when you live in your home, and no inheritance tax on your home when you pass it to your children or grandchildren."

The backlash

Not everyone is vibing with the idea. Critics are pointing out that since less than 5% of families currently pay inheritance tax, this looks like a massive W for the wealthy while ignoring everyone else. Tax Justice UK called the move a "reckless policy," and the TUC’s general secretary, Paul Nowak, slammed it as the "same old Tory playbook" of cutting taxes for the rich. Even Reform UK’s finance spokesperson, Robert Jenrick, took a jab, saying the Tories are just "looking after their own in Kensington."

Labour party chair Bridget Phillipson piled on, noting that the focus on the wealthy is tone-deaf while ordinary families are struggling with social care costs.

Refusing to 'unite the right'

Beyond taxes, Badenoch is clearly trying to draw a line in the sand. She flat-out rejected the "unite the right" movement, refusing to strike a deal with Nigel Farage’s party. She went hard on Reform UK, attacking their "character, conduct and standards" and explicitly distancing the Conservatives from Reform MPs who have questioned the identity of ethnic minorities in the UK.

"I don’t know whether you’ve noticed, but I am black. I am British," Badenoch said, emphasizing that her party won't be dragged backward by those questioning people's national identity.

Why it matters

The Conservatives are currently polling below where they were during their 2024 election defeat. By focusing on policies like childcare support for high earners and scrapping these taxes, the party is lowkey desperate to win back the affluent middle-class voters in southern England who abandoned them. Whether this "shop window" approach is enough to get people buying remains to be seen—the plot thickens.