Kemi Badenoch, leader of the Conservative Party, electrified her party’s annual conference in Manchester on October 8, 2025, with a bold pledge: if the Conservatives win the next election, they will abolish stamp duty on all primary residences in England and Northern Ireland. The announcement, which was kept tightly under wraps until the moment she delivered it, drew a standing ovation from the party faithful and immediately set tongues wagging across the political spectrum.
Stamp duty—a tax levied on homebuyers in England and Northern Ireland for properties over £125,000—has long been a source of frustration for aspiring homeowners. First-time buyers currently enjoy an exemption on properties up to £300,000, but for everyone else, the tax can add thousands to the cost of moving. "Stamp duty is a bad tax," Badenoch declared, according to BBC. "We must free up our housing market, because a society where no one can afford to buy or move is a society where social mobility is dead." She added, “That is how we will help achieve the dream of home ownership for millions.”
The policy, if enacted, would apply irrespective of purchase price for primary residences, but would not extend to additional properties, purchases by companies, or non-UK residents. Scotland and Wales, which have their own property tax regimes, would not be included—though the Conservative branches in those nations have expressed interest in replicating the cut if elected, as reported by BBC.
Financially, the move is not without controversy. The Conservatives estimate that abolishing stamp duty for main homes would cost the Treasury £9 billion a year after 2029, a figure they say is based on a "cautious" calculation and includes the expectation of a dramatic tax increase by the current chancellor, Rachel Reeves, in the upcoming autumn budget. The Institute for Fiscal Studies (IFS) puts the direct cost a bit higher—around £10.5–11 billion annually if Scotland and Wales are factored in—though they acknowledge the Tory estimate is not "unreasonably low" given the uncertainties in the housing market.
To fund the move, Badenoch laid out a sweeping plan for £47 billion in spending cuts. These include £23 billion from welfare, £8 billion from downsizing the civil service, and £7 billion from slashing the overseas aid budget. She emphasized a "golden rule" for future Conservative governments: half of all savings would go toward reducing the deficit, with the remainder earmarked for tax cuts and stimulating economic growth. “A society where no one can afford to buy or move is a society where social mobility is dead,” Badenoch reiterated, doubling down on her vision of a more dynamic property market.
Economists and housing experts have weighed in with a mix of praise and caution. Paul Johnson, former director of the IFS, told The Independent that scrapping the tax would be his "first port of call," but he suggested pairing the move with higher council taxes on more valuable properties to offset lost revenue. “Stamp duty is a drag on the housing market,” he said. However, he warned that abolishing the tax only for primary residences could worsen "distortions and disincentives for rentals," advocating a similar reduction for second homes to avoid unintended consequences.
Not all experts are convinced the numbers add up. Jonathan Portes, a former government economist, criticized the funding plan as "laughable," arguing that the Conservatives have "no remotely credible plan" to fill the fiscal gap. The Social Market Foundation’s Theo Bertram added that the policy would disproportionately benefit homeowners in the southeast and London, raising questions about its fairness across the country.
Despite these criticisms, the policy has found support among property professionals and advocacy groups. Tom Bill, head of UK residential research at Knight Frank, said the move would be "warmly welcomed" by buyers and sellers alike, with "positive repercussions for the wider economy and increased social mobility." The Home Owners Alliance called it a "real vote winner," asserting that stamp duty has denied homeownership opportunities to "too many for too long." "Kemi Badenoch is right: it’s a tax that traps households, hampers mobility and suppresses market activity," the group stated.
The stamp duty pledge is part of a broader Conservative push to regain political momentum amid sagging poll numbers—recent surveys put the party at just 17%—and growing pressure from both Labour and Reform UK. In her 45-minute address, Badenoch rolled out a raft of policies aimed at setting her party apart from its rivals. Alongside the stamp duty pledge, she promised to abolish business rates for around 250,000 high street shops and pubs, axe the carbon tax on electricity, treble police stop and search in crime hotspots, close down "rip-off" university courses, boost apprenticeships, and end what she called the "family farm tax."
Badenoch also took aim at Labour, accusing Sir Keir Starmer’s government of delivering "a doom loop of higher taxes, weaker borders, and month after month of chaos." She derided Labour’s stewardship as “weak and directionless,” claiming, “They had a plan to win, but no plan for power. No vision for Britain. They know how to make promises, but not how to deliver them.”
Labour was quick to hit back. Anna Turley, the party’s chair, accused Badenoch of being in "complete denial" about the Conservatives’ 14 years in government. "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." Liberal Democrat leader Sir Ed Davey urged moderate Tories to defect, while Green Party leader Zack Polanski said Badenoch was "speaking to the room, not listening to the nation."
Within the Conservative ranks, the mood at the Manchester conference was cautiously optimistic, with MPs and shadow ministers expressing satisfaction at the direction of Badenoch’s leadership—for now. But with the next local and national elections looming in May 2026, and the party still trailing Labour and Reform UK in national polls, the pressure is on. Robert Jenrick, a prominent Conservative figure, was a frequent presence at conference events, but open leadership challenges have, at least temporarily, been put on ice.
As the dust settles from the conference, one thing is clear: the Conservatives, under Badenoch’s leadership, are betting big that bold tax cuts and a renewed focus on homeownership can help them turn the political tide. Whether this gamble pays off at the ballot box remains to be seen, but for now, the party has a fresh argument to make—and a new battle line drawn in the contest for Britain’s future.
