The Conservative Party has pledged to repeal Labour’s planned High Value Council Tax Surcharge, commonly referred to as the “mansion tax,” if it wins the next general election. Shadow Chancellor Andrew Griffith described the tax, scheduled to take effect in April 2028, as “vindictive” and warned it would impose burdensome costs on homeowners with properties valued over £2 million, including retirees and commuters living in more modest homes who have experienced significant property value increases over time.

In a keynote address at the Conservative conference in Birmingham, Griffith argued that many affected homeowners would find the charge—up to £7,500 annually—unaffordable, especially those on fixed incomes who purchased their homes decades ago. He also cited Labour’s own data, noting that the tax would generate less than 1% of current council tax revenues and would harm property values. Griffith urged Chancellor John Healey to abandon the proposal ahead of the upcoming Budget, warning that if Labour failed to act, a future Conservative government would.

Griffith rebranded the charge the “Family Homes Tax,” emphasizing that it targets ordinary residents in cities such as Birmingham and Manchester, beyond traditionally wealthy households. He estimated that over ten years, the surcharge could cost affected individuals £75,000, a figure he suggested would be untenable for many, including widows living on limited means.

To finance the repeal of this tax, the Conservatives plan to pursue unpaid student loan debts owed by foreign students. Griffith emphasized the party’s commitment to reduce taxes overall, referencing prior Tory pledges to eliminate Labour’s family farm tax, remove VAT on private school fees, and abolish stamp duty. However, he cautioned that tax cuts would proceed only when economically viable, acknowledging ongoing speculation that Conservative leader Kemi Badenoch may propose a partial rather than complete overhaul of inheritance tax in her conference speech.

Griffith also addressed other tax policies under consideration, including a Net Zero charge on packaging, which he suggested echoed regulatory approaches of previous Conservative governments. He recognized past Tory governments had introduced excessive restrictions affecting consumer choices and energy use. Furthermore, he criticized Labour’s perceived economic strategy as resembling a “command economy,” citing high state spending and welfare dependency.

Meanwhile, Conservative leader Kemi Badenoch signaled readiness for a possible snap general election, despite Prime Minister Andy Burnham’s denials of imminent polls. Burnham convened his Cabinet at Chequers for an away day focused on a forthcoming ten-year policy plan, due to be unveiled later this year. Conservatives have pointed to recent Labour policy announcements as indicative of preparations for a new parliamentary term, though party chairman Kevin Hollinrake acknowledged current polls show little prospect of any party winning a clear majority in the near term.

Observers within and outside both parties have noted the increasing political tensions, with former advisors highlighting the potential for renewed Conservative attacks on Labour’s economic and welfare policies. At the same time, Conservatives remain cautious about calling an early election without stronger electoral prospects.