Kemi Badenoch has promised to eliminate Stamp Duty in an effort to redirect attention to her struggling party.
The Conservative leader aimed to inject energy into a lackluster party conference with a bold speech emphasizing that only the Tories can rectify the damage caused during their 14-year tenure in power.
Her surprising announcement was the abolition of Stamp Duty, labeling it as a detrimental tax hindering the housing market.
Addressing Conservative supporters in Manchester, Ms. Badenoch stressed the urgency to free up the housing market, highlighting that a stagnant property market hinders social mobility.
However, it was clarified later that the abolition of Stamp Duty would solely apply to primary residences, still remaining applicable to second homes, properties purchased by businesses, and overseas buyers.
The removal of Stamp Duty would primarily benefit buyers of high-value properties, as homes up to £125,000 would not incur any Stamp Duty, with the tax increasing as property value rises.
Under the plan, first-time buyers are exempt from paying Stamp Duty if their new home costs less than £300,000.
The Conservative Party estimates that the initiative would cost approximately £9 billion annually, to be covered by £47 billion in spending reductions in welfare, foreign aid, and the civil service size. However, economists have cautioned that the proposed cuts lack clarity and are challenging to evaluate.
The pledge was the culmination of a speech filled with policy proposals as Ms. Badenoch endeavored to boost her party’s dismal polling figures.
She criticized the Labour Party, asserting that only the Tories could rescue the country from the downward spiral caused by a weak economy and porous borders during Labour’s term in office.
Ms. Badenoch vowed to reverse several Labour policies, such as ending tax benefits for private schools and altering inheritance tax for farms to redistribute wealth to the affluent.
Additionally, she outlined stringent commitments for mass deportations, exiting the European Convention on Human Rights, repealing the Climate Change Act, and prohibiting doctors from striking.
While briefly mentioning Nigel Farage, whose Reform Party has been gaining traction among Conservative supporters, Ms. Badenoch accused him of adopting similar fiscal approaches as Jeremy Corbyn and Sir Ed Davey, casting doubt on their financial strategies following Liz Truss’s tax reduction proposals.
In a metaphorical reference, she likened political opponents promising extravagant spending to individuals shaking a “magic money tree,” underscoring the need for Conservative governance to restore fiscal responsibility.
Anna Turley MP, Chair of the Labour Party, criticized Kemi Badenoch for denying the Tories’ past failures and urged moderate Conservatives to distance themselves from her leadership.
Lib Dem leader Sir Ed Davey appealed to moderate Conservatives, cautioning them against Ms. Badenoch’s proposed actions, which he claimed deviated from traditional British values of tolerance, decency, and adherence to the rule of law.