Tories accused of prioritising rich voters as Badenoch lays out inheritance tax cut plan

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Published: 2026-10-07T13:12:56.685Z • Permanent link

Kemi Badenoch, the Conservative Party's leadership candidate, has announced plans to abolish the UK's inheritance tax, sparking widespread criticism from opposition parties and experts. The move is seen as a bid to win over affluent middle-class voters ahead of the next general election. Badenoch, who is also the UK's Brexit Minister, has promised to reduce taxes on inheritances to 40%, down from 40% currently. The plan is expected to benefit the wealthy, with those inheriting large estates potentially saving tens of thousands of pounds in tax.

Badenoch's announcement has been met with outrage from Labour Party leader Keir Starmer, who has accused the Tories of prioritizing the interests of the rich over those of the poor. "This is a slap in the face to working-class families who are already struggling to make ends meet," Starmer said. The plan has also been criticized by experts, who warn that it could exacerbate inequality and reduce the government's revenue. The Institute for Fiscal Studies estimates that the abolition of inheritance tax could cost the Treasury £4.5 billion per year.

Badenoch's decision has been widely condemned by opposition parties, with the Liberal Democrats and the Greens calling for her to withdraw her plans. The plan has also been met with criticism from some within the Conservative Party, with some MPs warning that it could alienate key voters. Despite the backlash, Badenoch remains committed to her plan, citing the need to reduce taxes and promote economic growth.

The abolition of inheritance tax has significant implications for the AI & Tech Ecosystems domain. Companies such as Google and Amazon, which have large estates and significant wealth, could potentially benefit from the reduced tax rate. However, the plan could also have negative consequences for smaller businesses and startups, which may not have the same level of wealth and could struggle to compete with larger companies. The plan could also impact research communities, such as the Open Data Institute, which relies on public funding and may struggle to secure grants if the government reduces its revenue.

The impact of the plan on markets could also be significant, with some experts warning that it could lead to increased inequality and reduced economic growth. The plan could also impact policy environments, such as the EU's Digital Services Act, which aims to regulate the tech industry and promote competition. The abolition of inheritance tax could undermine the EU's efforts to promote digitalization and reduce inequality.

The abolition of inheritance tax is part of a broader pattern of tax cuts and deregulation announced by the Conservative Party. The party has also pledged to reduce corporation tax and cut red tape for businesses. However, these plans have been criticized by experts and opposition parties, who argue that they could exacerbate inequality and reduce government revenue. The plan is also part of a larger trend towards tax cuts and deregulation, which has been seen in countries such as the United States and Singapore.