Kemi Badenoch has proposed abolishing inheritance tax, a move that critics say prioritises some of the wealthiest people in the country. The Conservative leader made the announcement in her speech on the final day of the party conference in Birmingham.
Under the proposal, couples would be allowed to have £1 million exempt from inheritance tax, as well as their family home. Political analysts have interpreted the move as an attempt to shore up support in the Tories' traditional heartlands in the South East, which have come under threat from Reform UK.
What Badenoch said
"These changes mean every inheritance tax bill will be cut and the number of families paying inheritance tax will fall by more than half," Badenoch said. "My ambition is to abolish inheritance tax altogether as soon as we can afford it."
According to the Office for Budget Responsibility's March forecast, 4.6 per cent of estates in 2023/24 were subject to inheritance tax. Should Badenoch succeed, it would leave an £8.2 billion financial black hole in the economy, according to HM Revenue and Customs.
Criticism from the left and right
The move was slammed by Tax Justice UK executive director Faiza Shaheen, who said: "Cutting inheritance tax, as trillions of pounds is going to pass between generations, is a reckless move by any politician that claims to be serious about getting Britain thriving. This is a policy that would take money from some of the poorest, to give to the wealthiest. And it would deprive public services of vital cash when the pressures on delivery are increasingly acute."
The TUC general secretary also criticised the pledge, saying: "This is a tax paid only by the very richest estates – 95 per cent pay no inheritance tax at all. Cutting it would do nothing for ordinary people. This is the same old Tory playbook: cutting taxes for their rich mates and leaving working people to pick up the bill. They are a party for inherited wealth, not workers."
Badenoch was also attacked on her right flank, with Reform UK's Treasury spokesperson Robert Jenrick claiming only 2 per cent of homes would be exempt from the tax altogether. "As usual, Kemi has chickened out of doing anything big. Presumably, it's because she couldn't match Reform's pledge to resign if she doesn't deliver on her promises," he said. Jenrick added that the majority of the homes that would be exempt were in London.
