Kemi Badenoch will give her keynote speech at the Conservative Party's annual conference today as she faces claims she is taking the Tories back to the "nasty party" era. The Tory leader has been criticised over "fantasy economics" after unveiling plans to halve employers' national insurance on jobs worked by young people.
The party has also come under fire for proposals to axe benefits for some under-25s and introduce pre-loaded cards for claimants, in a bid to ban them from spending financial support on alcohol, cigarettes, and gambling.
Reform coalition dismissal
On Tuesday, Badenoch dismissed a coalition plot with Nigel Farage's party, saying she would rather fight two general elections in quick succession than go into a coalition with Reform UK. Reform UK's deputy leader Richard Tice said the feeling is "mutual", telling Times Radio: "There are lots of people who want Reform to win, who will vote Reform, who'd be appalled at the idea that somehow we link up with the failed Conservatives."
Reform UK has been branded "too nasty for the nasty party" after Badenoch dismissed the coalition idea. Critics mocked the prospect of a right-wing coalition, saying both parties would offer a "reckless right-wing government" whether they joined forces or not.
Badenoch defends MP over 'no-go zones' claim
Badenoch has said she stands by a Tory MP who claimed there are "no-go zones" for white people in Luton. Blake Stephenson, a shadow home office minister and the MP for Mid Bedfordshire, made the remark at a fringe event at the Conservative party conference in Birmingham. He claimed Luton was a "shadow of its former self" and can be a "very dangerous place" where some communities live in "ghettoes".
Asked about his remarks during an interview with ITV News, Badenoch said: "I don't know the context of Blake's comments", but insisted he was "very sensible".
Inheritance tax speculation and Labour criticism
Badenoch is reportedly planning to announce plans to slash inheritance tax in her speech today. Currently, inheritance tax - charged at a standard rate of 40% - only applies to people who have an estate worth £325,000. This rises to £500,000 if a home is given to a child or a grandchild, meaning a couple have a combined tax-free property limit of £1 million when they die.
Deputy leader Alex Burghart said Badenoch wants to abolish the tax but won't announce anything the country can't afford. He defended the focus on inheritance tax as a "point of principle", despite only 4.7% of UK deaths paying it.
Labour chairwoman Bridget Phillipson said the Conservatives have not "learned a single lesson" since their election defeat in 2024. She said: "Kemi Badenoch's top team don't even think her leadership is the 'right way'. The Tory Leader is living in an alternate reality."
Badenoch is expected to position the Conservatives as ready for government and "fighting again for the belief that what people earn belongs to them" in her speech. She will say: "We are running out of money and running out of time to put it right. Conference, we have a fight on our hands and we need to be ready. Unless we start creating more value, unless we start growing our economy, something is going to break."
