UK (Parliament Politics Magazine) – Conservative leader Kemi Badenoch pledged to abolish stamp duty on primary residences to support homebuyers and boost the economy.
As reported by The Guardian, at a Tory conference in Manchester, Kemi Badenoch announced the party’s plans to scrap stamp duty on primary homes if they win the next election.
Kemi Badenoch’s views on scrapping stamp duty on homes
Kemi Badenoch pledged to scrap stamp duty on properties above £125,000 in England and Northern Ireland. The party said scrapping stamp duty on primary homes costs £9bn, but it still applies to second and foreign-owned properties.
Ms Badenoch claimed the tax cut can be funded due to planned £50bn savings by 2029. Economists warn that the planned cuts are unclear, but the Tory leader says they will support tax reductions and lower the deficit after the election.
Ms Badenoch stated,
“Home ownership should be a dream that’s open to everyone. Abolishing stamp duty on your home is a key to unlock a fairer and more aspirational society. Scrapping stamp duty will benefit people of all ages, because conservatism must speak to all generations: the young professional buying their first flat, the couple looking for somewhere to bring up their first baby, the growing family hunting for their forever home.”
The Tory leader said getting rid of stamp duty would help the housing market and the economy. She made this announcement at the end of a party conference full of policy plans, including leaving the European Convention on Human Rights. It also included scrapping the Climate Change Act and cutting welfare payments.
She told her party,
“You have seen it out there in the fringes, all over Manchester – this is a party busy with ideas.”
The Tory leader stressed a major tax cut but promised no further measures until the deficit is lowered, signaling an end to the ex-PM Liz Truss-era policies, adding,
“Securing our borders, getting people into work, policing our streets, defending the nation – none of it is possible without the money to pay for it.”
Ms Badenoch insisted the plans are fully funded after her shadow cabinet identified £47bn in savings, nearly half from welfare cuts.
The new “golden rule” directs half of all savings to Britain’s deficit and the other half to support the economy.
What did Robert Colvile say about Kemi Badenoch axing stamp duty?
The Centre for Policy Studies’ Robert Colvile said Badenoch was correct to abolish the UK’s “worst tax.”
He stated,
“Stamp duty is a horrendous tax that depresses economic activity, harms productivity and prevents people living in the places and houses they want to. That means 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.”
Mr Colvile said,
“In particular, as CPS work has shown, there is a very strong historic correlation between the number of property transactions and the number of houses built, with roughly one house built for every 10 transactions across the 20-year period we studied.”
He added,
“Making it easier for people to move gives builders the confidence to build, generating a double win for the economy and for the public and helping to increase home ownership.”
What did Mel Stride say about stamp duty?
Shadow Chancellor Sir Mel Stride said stamp duty is a “dreadful tax” and “one of the worst.”
He stated,
“Transaction-based tax, gums up the housing market. People don’t downsize when the kids have left. That’s another pressure on the housing market. People don’t move from one place to another as readily.”
Mr Stride added,
“The decorators and the furnishings and all the stuff that drives local economies when people move homes is lost. It’s an appalling tax.”
What did Tom Clougherty say about abolishing stamp duty?
Tom Clougherty, an director of the Institute of Economic Affairs stated,
“Abolishing stamp duty is the single best reform any government could make to Britain’s tax system.”
He said,
“As things stand, this outdated and uneconomic levy is wreaking havoc on our already troubled housing market – by deterring sales and depressing house-building.”
Mr Clougherty stated,
“Indeed, research suggests that the wider social and economic harms are equivalent to three-quarters of the revenue raised and that’s on top of the loss to the people actually paying the tax.”
He added,
“This means that stamp duty is many times more damaging, as a source of revenue, than broad-based taxes on income and consumption. Any proposal to permanently cut or abolish it is therefore extremely welcome.”
What did the Adam Smith Institute say about Kemi Badenoch’s tax plans?
The Adam Smith Institute described the proposal as a “radical plan to restore economic foundations.”
Maxwell Marlow, director of public affairs at the think tank, stated,
“In particular, the pledge to abolish stamp duty, which is Britain’s most economically and socially harmful tax, will be universally welcomed by economists and the public.”
He added,
“Likewise, the pledge to restrict Motability to only those who need it echoes ASI research that shows taxpayer costs can be saved. The battle is not yet won for the Conservatives, but these radical plans should set the tone for a Party which values and treasures economic, social, and moral liberty.”
What did Robert Jenrick say about scrapping stamp duty?
Shadow Secretary Robert Jenrick slammed stamp duty, calling it “the worst tax” during his reaction to Kemi Badenoch’s speech.
He added,
“It traps people wanting to move house and makes homeownership a more distant dream for young people. Scrapping it will benefit everyone in society.”
What did Kevin Hollinrake say about stamp duty plans?
The Tory chairman, Kevin Hollinrake, described the party’s stamp duty plan as a “statement of intent.”
He posted on X,
“It’s about restoring aspiration, unlocking opportunity, and giving people the freedom to move, grow and invest in their futures. Stronger economy, stronger borders. The party of opportunity. This is what we stand for.”
What did Labour say about Kemi Badenoch’s conference speech?
Labour claims Kemi Badenoch was in “complete denial” at the party conference.
Anna Turley, the Labour chairman, stated,
“The public saw the Tories’ disastrous blueprint for Britain across their 14 years of failure in government, and the Conservatives still won’t apologise for the mess they left.”
She said,
“Kemi Badenoch set herself a new ‘golden economic rule’ today and broke it immediately. It’s the same old Tories, with the same old policies without a plan. They didn’t work then and you can’t trust them now.”
Ms Turley added,
“Only Labour can renew Britain. Real wages have grown more in the first ten months of this Labour Government than in the first ten years under the Tories. Only Labour can be trusted to grow our economy, secure our borders, and make working people better off.”
What is stamp duty in the UK?
In the UK, Stamp Duty Land Tax is a tax on property buyers in England and Northern Ireland. Homes up to £125,000 are tax-free. For prices above that, the tax goes up in steps from 2% to 12%, depending on how expensive the property is.
Buyers of second homes, rental properties, or from outside the UK pay extra tax. This tax is charged only on the price over the limit, so homes cost more.
Which Labour figure had to resign over stamp duty failure?
Angela Rayner resigned over not paying enough Stamp Duty Land Tax. She was the deputy prime minister and housing secretary.
Ms Rayner said she paid lower stamp duty on her £800,000 flat in Hove. After an independent investigation, she admitted it was her mistake and resigned from her government and party jobs in September 2025.
Her resignation marked a major setback for Prime Minister Keir Starmer and triggered a ministerial reshuffle.