Kemi Badenoch argues inheritance tax cuts are ethical as the Tories roll out costly childcare and loan reforms.
During the opening days of the Conservative Party conference in the centre of Birmingham, the party leader used a Saturday afternoon appearance to outline a series of fiscal proposals aimed at reshaping the UK’s tax landscape. While the gathering featured a host of policy announcements, the most headline-grabbing moment came when Kemi Badenoch was asked whether the government would abolish the levy on estates over £325,000.
Her answer combined moral reasoning with a caveat about fiscal prudence.
Inheritance tax – a moral argument tempered by budgetary reality
Mrs Badenoch told reporters, “It is morally right that people don’t get taxed twice. It is morally right that if you work hard and want to give something to your children the Government doesn’t take it away.” The comment placed the debate about the inheritance tax in ethical terms, suggesting that paying the tax twice – once during a lifetime and again on death – is unfair.
Yet she quickly qualified the stance, adding, “I am not going to announce tax cuts unless we can show how we pay for them… tax cuts are a good thing but you’ve got to be fiscally responsible.” The leader therefore signalled openness to reform, but only if a sustainable funding path can be demonstrated.
Childcare cliff-edge and the £700 million funding plan
The conference also featured a pledge to eliminate the current “cliff-edge” rule that denies families earning more than £100,000 any entitlement to free childcare. Under the new proposal, every parent working at least 16 hours per week would qualify for 30 hours of free care each week. Conservatives estimate the scheme would cost around £700 million a year. To finance this, party officials suggested trimming the headcount of public servants employed by arms-length bodies, presenting the cut-back as a way to balance the new expense without raising taxes.
Student-loan tightening, EU settled status and broader fiscal savings
Another strand of the policy rollout targeted the student-loan system. The party announced stricter eligibility for non-UK nationals, a move they claim would save the taxpayer roughly £900 million annually. In parallel, the Conservatives said they would block new claims under the EU Settled Status (EUSS) scheme, describing the existing system as being “abused”. Both measures are presented as part of a broader effort to shore up public finances while still delivering on other flagship promises.
Political positioning and the road ahead
When pressed about poll figures that place the Tories behind both Labour and Reform UK, Mrs Badenoch responded with optimism: “I think that people will see that we have gone on a journey. We’re not the party that the public said no to in 2024. We are a new Conservative Party.” She highlighted the presence of a “strong team” in her shadow cabinet, promising that the “wonderful plans” unveiled at the conference would help “get this country working again”. Accompanying her to the venue was her husband, Hamish Badenoch, a banker, underscoring the personal dimension of the leader’s public image.
By framing inheritance-tax reform as a matter of fairness, linking childcare expansion to specific budget cuts, and positioning student-loan tightening as a revenue-raising measure, the party hopes to present a cohesive narrative that balances ambition with responsibility.
