October 9, 2025
At the Conservative Party conference, leader Kemi Badenoch promises to abolish stamp duty on primary residences over £125,000 and introduces a “golden rule” to halve spending cuts toward reducing Britain’s record debt.
In a notable policy announcement made at the Conservative Party Conference in Manchester on 8 October 2025, Opposition Conservative Leader Kemi Badenoch delivered a surprise pledge: she will abolish stamp duty on purchases of primary residences priced over £125,000 in England and Northern Ireland. Reuters+2The Guardian+2
Badenoch defended the move as a way to unlock Britain’s housing market, increase mobility, and bring home ownership closer to what she framed as core Conservative values. She described stamp duty as a burdensome tax that discourages people from moving and limits economic mobility. The Guardian+2Reuters+2
The abolishment applies only to primary homes; stamp duty will still apply for second homes, corporate purchases, and non-UK residents. The Guardian+2MarketScreener UK+2
Badenoch also introduced a “golden rule” targeting government borrowing, proposing £47 billion in annual spending cuts focused on welfare, foreign aid, and the size of the civil service. Half the savings would go toward cutting the deficit; the rest would support tax cuts or public spending. Reuters+2The Guardian+2
The policy is estimated to cost the treasury roughly £9 billion annually. The Guardian+2Financial Times+2
Economists have offered mixed feedback: many agree stamp duty can distort housing markets and reduce mobility, but some question how feasible the funding of such cuts is, especially given current levels of public debt. Financial Times+1
Within the Conservative Party, the pledge is seen as a strategic effort by Badenoch to bolster her leadership standing, contrast with Labour, and present the Tories as serious about economic reform. Critics warn that this could heighten scrutiny over where cuts will come from and the impact on public services. Reuters+1
This announcement comes during a period of internal Tories trying to re-establish credibility on economic policy, especially in the wake of post-Brexit disruptions, cost-of-living pressures, and criticism of prior leadership. It also reflects a wider trend in British politics to offer tax relief to homeowners as a voter-appealing measure.
