Kemi Badenoch has announced that the Conservatives would abolish stamp duty on sales of primary residences if they win the next election, in a policy-heavy speech aimed at boosting her party's economic credibility. The tax cut, which applies to England and Northern Ireland, would remove the levy on house purchases over £125,000 for new buyers, at an estimated cost of £9bn a year. Stamp duty would still apply to additional properties bought by companies and non-UK residents.
Speaking at the end of the four-day Tory conference in Manchester, Badenoch said: 'Home ownership should be a dream that's open to everyone. Abolishing stamp duty on your home is a key to unlock a fairer and more aspirational society.' She argued the policy would benefit people of all ages, from young professionals buying their first flat to families seeking a forever home.
Badenoch claimed the policy is affordable due to a separate promise to make nearly £50bn in spending cuts by 2029. However, economists have described the proposed cuts as vague and difficult to assess. The pledge comes amid a series of other announcements at the conference, including leaving the European Convention on Human Rights, repealing the Climate Change Act, and slashing welfare payments.
Many economists are critical of stamp duty, arguing it slows the housing market and discourages downsizing. Chancellor Rachel Reeves has considered replacing the tax with another form of property tax, though sources say she is unlikely to do so in this year's budget. Badenoch insisted on full abolition to stimulate the housing market and broader economy.
In her speech, Badenoch also promised a 'golden economic rule' to spend at least half of any savings on reducing the deficit, drawing a line under the Liz Truss era. She said: 'Securing our borders, getting people into work, policing our streets, defending the nation – none of it is possible without the money to pay for it.'
