UK's Kemi Badenoch Hints at Inheritance Tax Cut at Tory Conference
As the Conservative Party gathers in Birmingham, Business Secretary Kemi Badenoch suggests a reduction in inheritance tax could be 'morally right,' fueling speculation about a potential policy shift.
Business Secretary Kemi Badenoch has signaled a potential shift in Conservative Party policy regarding inheritance tax, suggesting that reducing the levy would be "morally right." Her remarks, made as the party's conference commenced in Birmingham, come amid growing speculation about significant policy announcements intended to revitalize the party's standing.
The Conservative Party is using the conference to present a united front and outline policy proposals aimed at demonstrating their readiness for government. Other shadow ministers have made policy announcements, including plans to address a "cliff edge" in childcare entitlement that currently excludes parents earning over £100,000.
Inheritance tax, a 40 percent levy on estates exceeding £325,000, is often framed as a tax on aspiration. However, current allowances and the transferability of assets between married couples effectively raise the threshold to around £1 million, with an additional £350,000 exemption for primary homes being passed down.
In comments to The Sunday Times, Badenoch stated, "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." She also emphasized the need for fiscal responsibility, noting, "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."
Other policy initiatives discussed by the party include a proposal to expand free childcare. Under these plans, all parents working at least 16 hours per week would be eligible for 30 hours of free childcare weekly. This policy is estimated to cost £700 million annually, with party officials suggesting funding could come from reducing the number of public sector employees in arm's-length bodies.
Additionally, the Conservatives have proposed tightening access to student loans for non-UK nationals, a move they claim could save taxpayers £900 million per year. These proposals would also affect applications under the EU Settled Status system, which the party described as being "abused."
Badenoch's public profile has grown due to her assertive performances in Parliament, contributing to an improvement in her personal approval ratings. Despite this, the broader Conservative brand continues to lag in opinion polls, prompting party leadership to highlight the strength of their team.
Addressing the current polling deficit, Badenoch stated, "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."