Badenoch plans to scrap inheritance tax, funding gap to be covered by welfare cuts
Party insiders say Kemi Badenoch would eliminate inheritance tax if she becomes Prime Minister, offsetting the loss with reductions to the welfare budget.
According to party insiders, Kemi Badenoch intends to remove the inheritance tax, which currently levies 40% on estates above £325,000, should she assume the premiership. The policy would only proceed if the government can reconcile the projected £9 billion revenue loss, likely by cutting the expanding welfare programme. Conservatives may announce the move at their Birmingham conference, though a final decision on the platform remains pending.
The plan contrasts sharply with Labour Prime Minister Andy Burnham's recent £1.6 billion tourist tax, a 5% surcharge on domestic holidays. Badenoch has repeatedly emphasized her desire to cut the "death tax" and has commissioned internal research to test its affordability. Shadow Chancellor Andrew Griffith, who also opposes inheritance tax, has cited Sweden's example as a model.
Why it matters
Abolishing inheritance tax could reshape UK fiscal policy and affect millions of families and welfare recipients.
How this story developed
- Sep 1 Prime Minister Andy Burnham to Address Commons on First Day Back
- Sep 3 Burnham announced a plan to extend devolution to all parts of England and to increase public control of utilities.
- Sep 4 Bond yields surged to their fastest rise since the 2022 mini‑budget, wiping out £12 billion of fiscal headroom.
- Sep 6 Burnham pledged to transfer failing utilities into public ownership.
- Sep 6 John Healey will launch a £150 million fund aimed at supporting university spin-outs and other high-growth companies across northern England.
- Sep 7 Healey also pledged steps to curb borrowing costs, energy bills, regulation and labour expenses on UK businesses.
- Sep 9 Prime Minister Andy Burnham said he will not trim social security programmes to meet the 3 % of GDP defence spending goal and gave no timetable for reaching it.
- Sep 9 Burnham publicly rejected the welfare‑cut funding plan.
- Sep 11 Crypto founder Ben Delo has donated £36 million to Reform UK, the largest party contribution on record, as police investigate alleged illegal foreign funding.
- Sep 12 The donation was announced as a record contribution while a police probe into foreign funding continues.
- Sep 12 Christopher Harborne announced a further large gift to Reform UK.
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