Kemi Badenoch promised to abolish stamp duty if the Conservatives win the next election as she closed the party conference on Wednesday. The Conservative leader used her speech to set out her vision of a country where the state "does less but does it better" and "profit is not a dirty word".
She pledged to impose a "golden rule" on budget plans, spending only half of any savings made through spending cuts, with the rest going to reduce the deficit. Badenoch also said she would cut student numbers, saving £3 billion that would then be spent on doubling the apprenticeship budget.
Housing market pledge
In the final passages of her speech, Badenoch committed to free up the housing market through abolishing stamp duty on people's primary homes. She said: "Stamp duty is a bad tax. We must free up our housing market, because a society where no one can afford to buy or move is a society where social mobility is dead."
Stamp duty land tax brought in an estimated £13.9 billion in the last financial year, though a large proportion comes from additional homes and other buildings. The Institute for Fiscal Studies estimated that abolishing stamp duty on primary residences will cost around £4.5 billion, while the Conservatives "cautiously" estimated the policy would cost £9 billion.
Conference challenges overcome
The address brought to a close a conference overshadowed by questions about her leadership and the threat from Reform UK. The day before her speech, Nigel Farage's party announced 20 councillors had defected from the Tories, while a poll published by More in Common showed the Conservatives continue to languish in third place.
However, the major defection that some in the party feared would take place on Wednesday morning did not materialise. Badenoch attacked her opponents, vowing to reverse Labour policies and accusing Sir Keir Starmer (Labour), Nigel Farage, Jeremy Corbyn and Sir Ed Davey of "shaking the same magic money tree".
Policy reversals and costs
Although she dismissed Reform as promising "free beer tomorrow", she reserved most attacks for Labour, pledging to reverse policies including abolishing VAT on private schools, reversing inheritance tax changes for farms and scrapping the carbon tax. The Conservatives estimated their spending promises would cost a total of £21.1 billion, compared with £47 billion of savings shadow chancellor Sir Mel Stride said he had identified.
Tory chairman Kevin Hollinrake said he expected the conference announcements would "move the needle in terms of the polls". He said: "I think those messages have been very well received this week by our members, very optimistic view of where we are today from our members and indeed the future."
Opposition reactions
Liberal Democrat leader Sir Ed Davey urged "one nation" Conservatives to join his party, accusing Badenoch of deciding to "abandon the traditional British values of tolerance, decency and the rule of law". Green Party leader Zack Polanski said Badenoch had been "speaking to the room, not listening to the nation", adding she "still sounds painfully out of touch with those dressed and ready to work for this country".
Labour Party chairwoman Anna Turley said Badenoch had been in "complete denial", adding: "The public saw the Tories' disastrous blueprint for Britain across their 14 years of failure in government - and the Conservatives still won't apologise for the mess they left."
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
