The Guardian
· collected 2026-10-07 · by Pippa Crerar Political editor
Kemi Badenoch, a Conservative leader, announced plans at the party conference in Birmingham to abolish inheritance tax on family homes and allow couples to leave an additional £1m tax-free to their families. Critics argue this move benefits wealthy voters, with Tax Justice UK calling it a “massive inheritance tax giveaway.” Currently, less than 5% of families pay inheritance tax, and the plan aims to cut this figure in half, financed by £70bn in identified savings. Opponents like the TUC claim the policy will not help ordinary people and is focused on cutting taxes for the rich while neglecting struggling families.
Written locally by qwen2.5:14b on 2026-10-07,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Conservative leader Kemi Badenoch pledged to scrap inheritance tax (IHT) on family homes and increase the amount couples can leave tax-free to £1 million during her keynote speech at the party's conference in Birmingham. This change would reduce the number of families paying death duties by half, according to Badenoch. She also expressed an ambition to abolish IHT entirely "as soon as we can afford it," but acknowledged current spending commitments on defense, prisons, and the economy prevent such a move immediately.
Badenoch portrayed the Tories as the "no-nonsense party" compared to Reform UK, which she described as a "circus." She emphasized that her party would fight against Labour’s plans for higher taxes and increased public spending, framing the upcoming election as a "battle for the soul of this nation."
Critics argue these proposals prioritize support for wealthier individuals rather than broader economic issues. Liberal Democrat leader Sir Ed Davey criticized Badenoch's speech, saying she was lecturing on fiscal responsibility while making unfunded promises amounting to tens of billions. The planned changes would take effect before a proposed mansion tax on properties valued at more than £2 million in England. Overall, the Conservative Party aims to differentiate itself from Labour and Reform UK by advocating for lower taxes and economic growth through reduced state intervention.
Written for “Conservatives Inheritance Tax Plan” on 2026-10-07,
grounded in this article and the 15 other(s) covering the same event.
Kemi Badenoch has announced the Conservatives would abolish inheritance tax on family homes if elected, prompting immediate criticism that she is prioritising cutting taxes for the rich.
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she → announce → rich
The Tory leader also said couples would be able to leave behind an additional £1m tax-free to their families, as the party attempts to shore up its traditional base in southern England.
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party → say → England
The move would mean the number of families paying inheritance tax – currently less than 5% do so – would fall by more than a half, Badenoch said, with the plan expected to be paid for from £70bn in savings the party says it has identified.
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it → mean → savings
“My ambition is to abolish inheritance tax altogether, as soon as we can afford it,” she told the Conservative party conference in Birmingham.
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she → abolish → Birmingham
“I believe the people who work hard and save should be rewarded for that effort.
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who → believe → effort
“So this is my guarantee: no stamp duty when you buy your home, no mansion tax when you live in your home, and no inheritance tax on your home when you pass it to your children or grandchildren.
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you → buy → children
The Tories’ policy plans announced this week – including support with childcare for those earning over £100,000, repealing the mansion tax, and the inheritance tax plans – have been firmly focused on affluent middle-class voters, many of whom deserted the party at the last election.
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many → announce → election
However, the inheritance tax plans are likely to raise fears about overheating the housing market, giving elderly homeowners an incentive to stay in large family homes rather than downsize.
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plans → raise → homes
It also prompted accusations that the party was favouring the rich over struggling families.
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party → prompt → families
In a statement, Tax Justice UK said: “Kemi Badenoch has just announced a massive inheritance tax giveaway to some of the wealthiest people in Britain.
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Badenoch → say → Britain
This is a reckless policy that will deprive public services of cash when they most need them.”
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they → deprive → them
The TUC’s general secretary, Paul Nowak, said: “This is a tax paid only by the very richest estates – 95% pay no inheritance tax at all.
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% → say → tax
Cutting it would do nothing for ordinary people.
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Cutting → cut → people
This is the same old Tory playbook: cutting taxes for their rich mates and leaving working people to pick up the bill.
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This → cut → bill
They are a party for inherited wealth, not workers.”
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They → inherit → wealth
Despite the Tories appearing more united this week than they have done for years, Badenoch did acknowledge in her speech that the party, still polling lower than at the time of their catastrophic 2024 election defeat, faced a long path to recovery.
“We have changed our party.
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We → appear → party
People are looking through the shop window.
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People → look → window
They like what they see, but let’s be honest, not enough of them are buying it.
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enough → like → it
We need to fix that,” she said.
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she → need → that
Senior Tories have been urging Badenoch to focus more on the economy, which they hope will help them to win back millions of votes in their traditional heartlands, and to pivot away from culture wars and migration.
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them → urge → wars
In her speech, Badenoch said economic growth would be the “central organising principle” of the next Conservative government, cutting red tape in areas such as planning, building a third runway at Heathrow and implementing a new energy policy, while also creating jobs.
The majority of her speech, however, was devoted to attacks on her political opponents, with the Tories desperate to edge ahead of Reform UK in the polls and be seen once again as the main opposition party on the right.
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Tories → say → right
Badenoch rejected calls from within her own party to “unite the right” by striking a deal with Nigel Farage’s party – reflecting warnings from her closest allies that doing so would risk toxifying the Conservative brand irrevocably.
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doing → reject → brand
“A year ago, those politicians were measuring up the curtains for No 10.
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politicians → measure → No
Now, some of them are measuring up the curtains for their prison cells,” she said.
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she → measure → cells
“The circus goes on and on, and it will never stop because this is who Reform politicians are.
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politicians → go → ?
So, to those who say ‘unite the right’, we are not uniting with that.
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we → say → that
People deserve better and we are going to give them better than that: character, conduct and standards matter.”
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character → deserve → that
Badenoch also drew a sharp dividing line with Reform on race, after Suella Braverman, the former Conservative home secretary who defected to Farage’s party, suggested that minority ethnic people could not be English.
uncertain
people → draw → party
“I don’t want to explain to my son when we’re watching our brilliant England team play football that some people don’t think our black players are English,” she said.
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she → want → football
“I remember back in the day when Ian Wright and John Barnes were playing.
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Wright → remember → day
Nobody was questioning whether they were English.
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they → question → ?
We certainly didn’t have sitting MPs questioning whether they were English.
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they → have → MPs
“We must not let these people take us backwards.
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people → let → us
Reform MPs are openly questioning people’s identity.
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MPs → question → identity
I don’t know whether you’ve noticed, but I am black.
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I → know → ?
I’m proud of our history, all that we have done, and all that we will do in the world.”
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we → ’m → world
Badenoch acknowledged that last year her leadership of the party had been under intense pressure.
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leadership → acknowledge → pressure
But she added: “Let me tell you, I’m not someone who gets written off, and neither is the Conservative party.
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party → add → you
There is a reason our party is still here after 200 years.
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party → be → years
We have adapted to every single challenge and every single age, and we are doing it again.”
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we → adapt → it
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