Kemi Badenoch Unveils 'Golden Rule' and Stamp Duty Abolition at Conservative Conference

Badenoch Outlines New Economic Strategy

Conservative Party leader Kemi Badenoch today unveiled a significant economic plan during her keynote speech at the party's annual conference in Manchester. The proposals include a 'golden economic rule' and a commitment to abolish stamp duty on primary residences, should the Conservatives secure victory in the next general election. The announcements are part of an effort to restore the party's economic credibility and strengthen Badenoch's position as leader.

'Golden Rule' for Fiscal Responsibility

At the core of Badenoch's economic vision is a 'golden economic rule' stipulating that at least half of all money saved through future spending cuts would be allocated to reducing the national deficit. The remaining portion would be directed towards tax cuts and other measures designed to stimulate economic growth. Badenoch stated, 'Every pound we save will be put to work. At least half will go towards cutting the deficit – because living within our means is our first priority.' This rule is intended to demonstrate fiscal prudence and counter what Badenoch described as Labour's 'borrowing and tax doom loop.'

Pledge to Abolish Stamp Duty on Primary Residences

In a move aimed at revitalizing the housing market and promoting home ownership, Badenoch pledged to abolish stamp duty entirely on primary residences. She characterized stamp duty as a 'bad tax' and an 'un-Conservative tax' that impedes social mobility. The policy would apply to primary residences in England and Northern Ireland, regardless of purchase price, but would not extend to additional properties, those bought by companies, or by non-UK residents. Scotland and Wales are excluded due to their separate taxation systems.

The Conservative Party estimates the abolition of stamp duty on primary residences would cost approximately £9 billion, a figure they claim is cautiously calculated. This cost is intended to be covered by a broader package of identified spending cuts totaling £47 billion. The Institute for Fiscal Studies (IFS) has offered a lower estimate for the cost, around £4.5 billion.

Broader Economic Measures and Context

Badenoch's speech also touched upon other proposed measures, including:

• Identifying £47 billion in spending cuts across welfare, the civil service, and overseas aid.
• Reversing several Labour policies, such as VAT on private schools and changes to inheritance tax for farms.
• Reforming the higher education sector by capping student numbers for 'rip-off' courses to double the apprenticeship budget.

The economic plan, delivered on Wednesday, October 8, 2025, seeks to differentiate the Conservative Party's approach to economic management and address concerns about the national deficit.