In a dramatic political revelation that's sent shockwaves through Westminster, Conservative leadership contender Kemi Badenoch is reportedly considering the complete abolition of stamp duty land tax, according to confidential documents obtained by The Independent.
The Tax Revolution That's Dividing Tories
The leaked proposals outline what would represent the most significant overhaul of property taxation in decades, potentially saving homebuyers thousands of pounds but raising serious questions about the £15 billion annual revenue stream that currently funds essential public services.
Senior Conservative figures have expressed deep concern about the viability of such a radical move, with one former minister warning that "eliminating stamp duty without a clear replacement revenue stream would be fiscal madness".
Market Stability at Risk
Property experts are sounding alarms about the potential consequences for the UK housing market. While first-time buyers might welcome reduced upfront costs, economists fear the policy could:
- Create artificial demand and drive up house prices
- Destabilise the property market during already uncertain economic times
- Leave a massive hole in government finances
- Benefit wealthier homeowners disproportionately
Leadership Ambitions Under Scrutiny
The timing of this leak raises significant questions about Badenoch's leadership campaign strategy. As the Conservative Party prepares for a potential leadership contest, this bold tax proposal positions her as a radical reformer but also exposes her to criticism from fiscal conservatives.
One Treasury insider commented: "This isn't just about helping homebuyers - it's about whether we can afford to lose one of our most reliable tax revenues when public services are already stretched to breaking point."
The Political Fallout
The proposal has created clear dividing lines within the Conservative Party, with moderates concerned about the practical implications while radical reformers see it as exactly the kind of bold policy needed to revitalise the housing market and win back younger voters.
As the debate intensifies, all eyes will be on how this controversial policy plays out in the coming leadership battle and what it means for the future of Conservative economic policy.
