Kemi Badenoch electrified the Conservative Party conference today with a headline-grabbing pledge to abolish stamp duty, declaring that “owning your home gives you a real stake in society” and that the tax “is a bad tax, an un-Conservative tax.”
The Tory leader’s announcement brought delegates to their feet in one of five standing ovations during her 55-minute address, which was punctuated by almost 20 minutes of applause.
The proposal to scrap stamp duty outright, rather than simply cut rates, marks the centrepiece of a new Conservative economic vision it says is built on fiscal restraint and a promise to “unleash” the housing market.
“There is a big barrier in the way and that barrier is the tax you have to pay when you buy your own home,” Mrs Badenoch told cheering supporters. “That barrier is stamp duty. The next Conservative government will abolish stamp duty on your home.”
A Bold Move on Property Tax
Stamp duty, officially known as Stamp Duty Land Tax, is paid on property purchases in England and Northern Ireland and currently brings in around £11.6 billion a year for the Treasury. Revenue fell by nearly £4 billion in the last financial year as housing transactions slowed, with many economists citing the tax as a deterrent to both first-time buyers and downsizers.
Mrs Badenoch’s move, bringing back one of former Prime Minister Boris Johnson’s aims to eliminate the levy entirely, has been hailed by free-market think tanks as one of the most radical tax reforms in decades.
Tom Clougherty, Executive Director of the Institute of Economic Affairs (IEA), described the decision as “the single best reform any government could make to Britain’s tax system,” arguing that stamp duty “is wreaking havoc on our already troubled housing market.”
Robert Colvile, Director of the Centre for Policy Studies, echoed the sentiment, calling it “Britain’s worst tax,” and noting that cutting it “is not only right but should be far more cost-effective than pretty much any other major tax cut, due to the boost to the economy.”
Fully Costed, Says Badenoch
Mrs Badenoch insisted that the plan is “fully costed,” pointing to £47 billion in identified savings, almost half of which would come from welfare reform. Under her newly announced “golden rule”, half of those savings would go toward reducing Britain’s deficit, with the rest used to spur growth through tax reform and investment.
“Because of the tough decisions on what the government shouldn’t do… we can afford to make one more announcement,” she said, unveiling the pledge to abolish stamp duty. “At the heart of a Conservative Britain is a country where people who wish to own their own home can.”
The Conservative leader contrasted her approach with the unfunded tax cuts of Liz Truss’s 2022 mini-budget, emphasising that fiscal responsibility would underpin her economic policy. “It starts with fiscal responsibility,” she said. “We have to get the deficit down and show how every tax cut or spending increase is paid for.”
A Vision for Home Ownership and Growth
Mrs Badenoch linked the abolition of stamp duty to a broader goal of reviving home ownership and social mobility. She told delegates that the measure would help “young professionals buying their first flat,” “couples bringing up their first baby,” and “pensioners looking to downsize.”
“Scrapping stamp duty will benefit people of all ages,” she said. “No longer will they be punished with a tax that is a barrier to them doing the right thing for them, their family and for society.”
Shadow Chancellor Sir Mel Stride backed the move, branding stamp duty a “dreadful tax” that “gums up the housing market,” preventing people from moving, downsizing or upgrading their homes.
Standing Ovations and Party Unity
The conference hall in Manchester was charged with enthusiasm, with Mrs Badenoch pausing several times as supporters broke into applause. At one point, she laughed as she told the audience: “I thought you’d like that one,” after announcing the stamp duty pledge.
In a rousing conclusion to her speech, she declared:
“I stand for stronger borders and a stronger economy so that the young can fulfil their potential, the old can live out their years in dignity, and everyone can achieve their dreams to own a home, run a business, raise a family.
This is the Britain I stand for. If this is the Britain you stand for, then stand with me and let’s build it, together.”
Context and Reaction
The promise to scrap stamp duty is likely to dominate political debate in the coming weeks, setting up a sharp contrast with Labour’s fiscal policies. Economists will be watching closely to see how the Conservatives plan to offset the loss of tax revenue, though supporters argue the boost to housing activity and related industries could make up the difference.
As the applause subsided and delegates spilled out into the Manchester sun, one thing was clear: Badenoch’s gamble on property ownership has reignited the Conservatives’ claim to be the party of aspiration.
The Labour Party and Reform UK have been asked for comment.
