The Conservative Party has pledged significant tax cuts aimed at the wealthiest households, with a focus on scrapping a proposed “mansion tax” and reducing inheritance tax. Shadow Chancellor Andrew Griffith announced plans to repeal a council tax surcharge on properties valued above £2 million, which he labeled “Labour’s family homes tax,” should the Conservatives win the next general election.

Griffith also outlined intentions to extend subsidized childcare benefits to families earning more than £100,000, addressing a current “cliff-edge” penalty where parents earning just above this threshold can lose tens of thousands of pounds in support. Additionally, he expressed an ambition to eliminate the 60 percent marginal tax rate that affects incomes between £100,000 and £125,140, though he cautioned that such changes would take time to implement.

“We believe it is unfair for anyone to face a situation where more than half of any extra income they earn goes to the government,” Griffith told attendees at the Conservative party conference in Birmingham.

These tax-cut proposals form part of a broader Conservative strategy to regain support among affluent voters in England, many of whom shifted toward the Liberal Democrats in the 2024 election. There is widespread speculation that party leader Kemi Badenoch may announce further inheritance tax relief during her speech at the conference.

Only around 5 percent of estates are subject to inheritance tax (IHT), which is currently set at 40 percent on estates—including family homes—valued over £500,000. Couples can combine allowances to pass on up to £1 million tax-free. While unpopular, IHT generates nearly £14 billion in revenue annually, on par with government income from alcohol duties or environmental levies.

Badenoch has framed proposed cuts as a moral issue. In comments to the Sunday Times, she argued that “it is morally right that people don’t get taxed twice” and that the government should not “take away” assets that individuals work hard to pass to their children. Her allies noted that any changes to inheritance tax would depend on available funding, with no confirmation that the topic will feature prominently in her conference address.

Griffith emphasized the economic rationale behind the tax reforms, suggesting that cutting inheritance tax could help stem the emigration of wealthy individuals from the UK. “We want to get to, over time, a tax environment in which people feel supported, that the UK is a competitive place to remain,” he said, adding that any reductions would be pursued as a long-term objective contingent on fiscal capacity.

These tax proposals come amid ongoing debates about the balance between generating government revenue and fostering economic competitiveness, reflecting the Conservative Party’s efforts to court wealthier voters ahead of the next election.