Conservative leader Kemi Badenoch has made a bold promise that if her party wins the next election, they will eliminate stamp duty. This statement was delivered during her speech at the Conservative party conference, where she criticized the tax as a “bad tax.”
Badenoch emphasized that the Conservative party understands the values of its supporters, who are hardworking individuals striving to build a better future for themselves and their families. She highlighted that these people are determined to own their homes, but face a significant obstacle in the form of stamp duty.
“The tax you have to pay—stamp duty—is a barrier,” she stated. “Stamp duty is a bad tax, an un-conservative tax.”
She further argued that removing this tax would help free up the housing market, which is crucial for social mobility. A society where no one can afford to buy or move is one where opportunities are limited, she said.
This policy is part of several announcements made by Mrs. Badenoch during her speech on the final day of the conference in Manchester. Other proposals included eliminating Labour’s tax increases on school fees, farms, and family businesses.
To understand the significance of stamp duty, it is important to know its history. The tax was first introduced in 1694 as a way to fund the war against France. Initially intended to last only four years, it proved so effective in generating revenue that it continued in a different form to this day.
The original introduction of stamp duty was attributed to William III and Mary II. The levy, originally enforced by the monarchy, can be seen today as a series of Stamp Acts. The modern UK Stamp Duty, which Badenoch refers to, is known as the Stamp Duty Land Tax.
In 2003, Tony Blair’s government transitioned from a document-based system to a transaction-based, progressive tax system. This change aimed to make property ownership more equitable and reflect true property values.
If Badenoch’s proposal were implemented, it would have significant financial implications. The Stamp Duty Land Tax generated approximately £13.9 billion in the last financial year, with a large portion coming from additional homes and other buildings.
According to the Institute for Fiscal Studies (IFS), abolishing stamp duty on primary residences could cost around £4.5 billion. However, the Conservatives estimated that the policy would cost £9 billion, citing concerns about potential increases in stamp duty by Chancellor Rachel Reeves.
Despite these figures, Badenoch insisted that the promise could be fulfilled while adhering to her new “golden rule.” She described the move as “fiscally prudent.”
Her speech concluded a conference that had been marked by questions about her leadership and the growing influence of Reform UK. The day before her address, Nigel Farage’s party announced that 20 councillors had defected from the Tories. A poll published by More in Common on Wednesday showed the Conservatives still struggling in third place.
For more information, readers can contact the news team via email at [email protected]. Additional stories can be found on the news page.
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