Kemi Badenoch has signalled that the Conservatives could seek to cut inheritance tax, saying it would be “morally right” for people to pass on more of their wealth to their children.
The Conservative leader made the comments as her party’s conference opened in Birmingham, amid speculation that she could unveil a prominent policy on the levy.
Asked whether she intended to abolish inheritance tax, Mrs Badenoch told the Sunday Times: “It is morally right that people don’t get taxed twice. It is morally right that if you work hard and want to give something to your children the Government doesn’t take it away.”
She also stressed that any reduction would have to be funded. “I am not going to announce tax cuts unless we can show how we pay for them… tax cuts are a good thing but you’ve got to be fiscally responsible,” she said.
Inheritance tax is charged at 40 per cent on estates worth more than £325,000. For most married couples, the effective threshold is £1 million because allowances can be transferred and relief is available on £350,000 of the value of a primary home passed on.
The issue is viewed by the Conservatives as a charge on aspiration, although most families do not pay the tax.
Mrs Badenoch is using the conference to present a broader programme intended to demonstrate that the party is ready for government. Shadow ministers have announced plans including an end to the childcare “cliff edge”, under which parents earning more than £100,000 currently lose eligibility.
Under the proposed changes, all parents working at least 16 hours a week would qualify for 30 hours of free childcare. The Conservatives estimate the policy would cost £700 million a year, funded by reducing the number of public servants at arm’s-length bodies.
Other announcements include a pledge from deputy leader Alex Burghart to oppose any attempt by Andy Burnham to unwind Brexit, while shadow chancellor Andrew Griffith is considering measures to reduce public spending.
The party has also proposed tighter access to student loans for non-UK nationals, which it says would save the taxpayer £900 million a year. The plan would also prevent claims through the EU Settled Status system, which the Conservatives say is being abused.
Mrs Badenoch’s performances in Parliament have improved her personal ratings, but the Conservative brand continues to trail both Labour and Reform in polling. Arriving at the conference, she said the party had changed since its 2024 defeat.
“We’re not the party that the public said no to in 2024. We are a new Conservative Party,” she said. “I’ve got a strong team. So much of my shadow cabinet are here, and they are going to be showing all the wonderful plans we have to get this country working again.”
