Kemi Badenoch has given her strongest indication yet that the Conservatives could promise a major cut to inheritance tax as the party’s annual conference gets under way.
The Tory leader described reducing the levy as “morally right”, fuelling speculation that she could unveil a headline-grabbing tax policy.
Speaking as Conservatives gathered in Birmingham, she said the party could rebuild public support through “common sense”. She also presented herself as a “no-nonsense mum”, contrasting her style with what she called Andy Burnham’s “cheesy uncle” image.
Shadow ministers have been using the conference to announce a series of policies designed to demonstrate that the Conservatives are preparing seriously for a return to government.
Among the proposals is an end to the childcare “cliff edge”, under which parents lose their entitlement once their earnings pass £100,000.
Deputy leader Alex Burghart has also pledged to oppose any attempt by Andy Burnham to reverse Brexit, while shadow chancellor Andrew Griffith is reportedly examining options to reduce public spending.
Kemi Badenoch, pictured arriving at the Tory conference last night, has suggested the Conservatives could pledge a substantial inheritance tax cut
Inheritance tax is often criticised by Conservatives as a penalty on ambition and family wealth, although the majority of households do not pay it.
The tax is charged at 40 per cent on estates valued above £325,000. For many married couples, however, allowances can raise the effective threshold to £1million, including transferable reliefs and the allowance covering up to £350,000 of a main residence passed on to descendants.
In an interview with The Sunday Times before the conference, Badenoch was asked whether she intended to abolish inheritance tax.
She said: “It is morally right that people don’t get taxed twice. It is morally right that if you work hard and want to give something to your children, the Government doesn’t take it away.”
But she also stressed that any tax reduction would have to be funded, adding: “I am not going to announce tax cuts unless we can show how we pay for them… tax cuts are a good thing but you’ve got to be fiscally responsible.”
Under the Conservatives’ childcare plans, every parent working at least 16 hours a week would qualify for 30 hours of free childcare each week.
The measure is expected to cost approximately £700million annually. Party officials say the money could be found by reducing the number of public servants working for arm’s-length bodies.
Appearing on the BBC’s Sunday with Laura Kuenssberg, Badenoch said the aim was to ensure that “people who work harder don’t get punished for doing so”.
The Conservatives have also proposed restricting access to student loans for people who are not UK nationals, claiming the change could save taxpayers £900million each year.
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The plans would additionally prevent claims under the EU Settled Status Scheme, which the party says is being abused.
Badenoch’s forceful performances at Prime Minister’s Questions have attracted praise, while her personal approval ratings have risen noticeably.
Despite that progress, the Conservative Party’s wider image continues to trail behind, prompting senior figures to emphasise the strength and range of its frontbench team.
Rejecting claims that policies focused on reducing benefits and expanding the prison system marked a return to the Conservatives’ former “nasty party” reputation, Badenoch said: “It’s the common sense party. That’s what we’re doing.”
‘And, quite frankly, if we were doing so well the old way, then why did we have such a terrible issue in 2024?’
She told the BBC’s Sunday With Laura Kuenssberg programme: ‘I am a classic old-school conservative. I believe in common sense: people working hard and being rewarded for that effort.’
Despite wanting to draw a clear line under mistakes of the past, Mrs Badenoch said some principles were ‘timeless’ and should continue to guide the party.
She has released a 95-page ‘mission statement’ entitled ‘The Right Way’, describing the principles that will underpin a Tory government.
‘The principles and the values never change,’ she said. ‘Personal responsibility is not a 1980s idea.’
Asked how she would characterise herself and Labour leader Mr Burnham after she described Reform UK leader Nigel Farage as a ‘grumpy grandpa’, she said: ‘Andy Burnham is the cheesy uncle. I think he’s the cheesy uncle who does all the dad jokes.
‘And what am I? Someone else has to do that. It’s very difficult… They probably see me, you know, as the no-nonsense mum. No nonsense, probably me.’
Arriving at conference yesterday, Mrs Badenoch was asked how the Tories intended to overturn the poll deficit with both Labour and Reform.
She said: ‘I think that people will see that we have gone on a journey. We’re not the party that the public said no to in 2024. We are a new Conservative Party.
‘I’ve got a strong team. So much of my shadow cabinet are here, and they are going to be showing all the wonderful plans we have to get this country working again.’
The Conservative leader arrived at the conference venue in the centre of Birmingham alongside her husband, Hamish Badenoch, a banker.
