Kemi Badenoch, a leading figure in the Conservative Party, has described cutting inheritance tax as “morally right” amid growing debate over the levy on estates. In an interview ahead of the party’s annual conference this Wednesday, Badenoch argued that inheritance tax represents a form of double taxation and unfairly affects British farmers and family businesses.

Inheritance tax, currently set at 40 percent, is applied to estates exceeding a threshold of £325,000, with additional allowances available for property passed directly to descendants. Transfers made more than seven years before death are exempt, effectively reducing the tax burden over time. Government data show that in 2023-24, around 4.7 percent of estates—approximately 30,400—were liable for inheritance tax. Although the proportion of estates affected is relatively small, income from the tax is significant, expected to increase from £9 billion this year to £15 billion by 2030. The tax remains unpopular among the public and is frequently criticized as unfair.

Badenoch highlighted the impact on specific groups, emphasizing that farmers and family-run businesses often lack the flexibility to relocate and thus bear the brunt of the tax. She stated, “It is morally right that people don’t get taxed twice... I don’t want to see what people have built taken away so that Andy Burnham could open a new office for No 10 somewhere.” Badenoch also suggested that Labour policies are putting pressure on these communities, although she maintained caution about announcing imminent policy changes. She said tax cuts need to be fiscally responsible and that any plans would have to demonstrate how they would be funded.

The prospect of inheritance tax reform is significant politically. Badenoch’s intervention raises expectations that the Conservatives might commit to reducing or abolishing the tax at their conference, echoing similar proposals made by former Chancellor George Osborne ahead of the 2007 election. This possibility has surfaced amid speculation that Labour leader Andy Burnham might call a snap election—despite Burnham’s public statements ruling out an early poll until 2029.

However, the debate has drawn criticism from Reform, a rival party, which advocates for raising the personal income tax allowance rather than cutting inheritance tax. Robert Jenrick, Reform’s economic spokesman, argued that reducing inheritance tax “predominantly” benefits wealthier individuals, while increasing the income tax allowance would offer broader relief to low-income workers. He also described abolishing inheritance tax as “morally wrong,” favoring cuts to income tax instead.

In addition to inheritance tax discussions, the Conservative Party plans to unveil new welfare cuts at the conference, intended to contribute to fiscal savings ahead of any tax reform announcements. As the conference approaches, inheritance tax remains a focal point in the ongoing debate over taxation, fairness, and economic policy within British politics.