Kemi Badenoch, the leader of the Conservative Party, indicated a potential pledge to reduce inheritance tax during the opening of the Conservative conference in Birmingham. She stated that reducing the tax would be 'morally right' as speculation grows about a significant policy shift. Badenoch's comments come as the party aims to demonstrate signs of revival amidst competition from opposition parties.
Shadow ministers have been announcing various policies, including a proposal to end the current childcare entitlement threshold, which excludes parents earning over £100,000. Deputy leader Alex Burghart has committed to reversing any attempts by Andy Burnham to reverse Brexit, while shadow chancellor Andrew Griffith is reportedly considering measures to limit public spending.
Inheritance tax, which applies to estates valued over £325,000 at a rate of 40%, is viewed by some as a burden on families, despite most not being subject to it. For married couples, the effective threshold is around £1 million due to transferable allowances and relief on primary home value. In an interview with the Sunday Times, Badenoch was asked about the possibility of abolishing the tax, to which she responded that it is 'morally right' for individuals who work hard to pass on their wealth without government taxation.
Badenoch emphasized the need for fiscal responsibility when discussing tax cuts, stating, 'I am not going to announce tax cuts unless we can show how we pay for them.' The proposed childcare policy aims to provide 30 hours of free care per week for parents working 16 or more hours, estimated to cost £700 million annually, which officials suggest could be funded by reducing the number of public servants in certain bodies.
Additionally, the Conservative Party has proposed tightening access to student loans for non-UK nationals, claiming this would save taxpayers £900 million per year and block claims under the EU Settled Status system, which they allege is being misused. Badenoch's recent performances in Parliament have garnered positive feedback, contributing to an increase in her personal approval ratings. However, the Conservative Party continues to face challenges in overcoming a polling deficit against Labour and Reform. Badenoch expressed confidence in her team and the party's new direction, stating, 'We're not the party that the public said no to in 2024. We are a new Conservative Party.'
She arrived at the conference venue in Birmingham with her husband, Hamish Badenoch, who works in banking.