In a dramatic announcement that sent shockwaves through the Conservative Party conference, Chancellor Kemi Badenoch has revealed plans to completely scrap stamp duty land tax in England and Northern Ireland.
The bold move, unveiled during her keynote speech in Manchester, represents one of the most significant tax reforms in recent political history and marks a clear dividing line with Labour ahead of the next general election.
A Property Market Revolution
Badenoch declared the controversial tax 'dead and buried,' positioning the Conservatives as the party of home ownership and economic freedom. 'We are tearing down the barriers that prevent hardworking people from getting onto and moving up the property ladder,' she told cheering delegates.
The abolition will apply to all residential property purchases, potentially saving homebuyers thousands of pounds in upfront costs. This radical reform aims to stimulate a housing market that has struggled with affordability and transaction volumes in recent years.
Funding and Economic Strategy
While specific funding details remain unclear, the Chancellor indicated the measure would be financed through previously announced spending controls and economic growth measures. 'This isn't about finding new money—it's about trusting people with their own money,' Badenoch asserted.
The policy forms part of a broader economic package that includes:
- Accelerated business tax cuts
- Further national insurance reductions
- Simplified planning regulations
- Enhanced support for first-time buyers
Political Battle Lines Drawn
The announcement immediately sparked fierce political debate, with Labour dismissing the move as an 'unfunded giveaway' that would benefit wealthier homeowners disproportionately. Shadow Chancellor Rachel Reeves warned the policy would create a 'black hole in public finances' without clear funding mechanisms.
However, Conservative strategists believe the policy will resonate strongly with key voter demographics, particularly younger aspiring homeowners and families looking to upsize.
Market Reaction and Implementation
Property experts have welcomed the potential stimulus to market activity but caution that the long-term impact on house prices remains uncertain. The Royal Institution of Chartered Surveyors described the move as 'the most significant intervention in the property market in a generation.'
The stamp duty abolition is expected to take effect from April 2026, pending parliamentary approval and the Conservatives winning the next election.
