Conservative leader Kemi Badenoch is set to use her closing address at the party conference in Birmingham to unveil a suite of tax‑cutting measures while warning that the country faces a looming crisis if growth does not improve. She will accuse Andy Burnham’s Labour of presiding over a “tax doom loop that is making us all poorer” and declare that the coming political contest will be “a battle for the soul of this nation”. The speech also reaffirms the Tories’ refusal to enter any pact with Reform UK, citing concerns over the party’s financing.
Tax Cuts Take Centre Stage
Badenoch is expected to announce a reduction in the 40 per cent inheritance tax rate that applies to estates worth more than £325,000. She has previously signalled a desire to abolish the levy altogether, but only if the public finances can bear the cost, according to deputy leader Alex Burghart. In addition, she will propose cutting employers’ national insurance for workers aged 21 to 24 from the current rate to 7.5 per cent, a move aimed at easing youth unemployment. The so‑called mansion tax on properties in England valued above £2 million will also be scrapped. To fund these measures, the party says it will look to welfare savings of around £30 billion.
Warnings of a ‘Tax Doom Loop’
In her speech, Badenoch will warn that “something is going to break” without stronger economic growth, directly blaming Labour’s approach. She will claim that the current administration is trapped in a “tax doom loop that is making us all poorer” and accuse ministers of believing that growth is created by politicians rather than enterprise. The rhetoric is framed as a broader ideological clash: she will describe the forthcoming contest as “a fight that we have not seen in this country for more than half a century” and insist it will be “a battle for the soul of this nation. A battle of ideas.” She will close by positioning the Conservatives as the party defending the principle that “what people earn belongs to them, not government.”
Ruling Out a Deal with Reform UK
Badenoch has also made clear that she would rather face two successive general elections than enter a coalition with Nigel Farage’s Reform UK should the next election produce a hung parliament. Deputy leader Alex Burghart reinforced that stance, telling reporters that the Conservatives “will not ever” make a deal with their right‑wing rivals. He criticised Reform’s funding, saying the party has “taken money from very dubious sources in very dubious ways” and pointed out that Farage has not accounted for £5 million that entered his private bank account. Burghart added his suspicion of large sums coming from cryptocurrency, describing it as “a system deliberately set up to hide its origins,” and concluded with the remark, “You can buy a lot of things with money, but you can’t buy integrity.”
Why it Matters
The proposed tax cuts signal a clear shift in Conservative strategy toward offering tangible financial relief to voters, particularly younger workers and homeowners, while attempting to differentiate the party from both Labour and the rising Reform UK challenge. By framing the economic debate as a moral battle over who truly earns the nation’s wealth, Badenoch seeks to energise a base that has been uneasy about the party’s direction. Simultaneously, the firm rejection of any alliance with Reform UK underscores the Tories’ attempt to preserve their brand integrity amid concerns over the rival party’s financing, a move that could shape the dynamics of any future hung parliament and influence the broader tone of British politics heading into the next election.