Conservative Party leader Kemi Badenoch has pledged to scrap inheritance tax (IHT) on family homes and allow couples to leave up to £1 million tax-free. The announcement was made during her keynote speech at the Conservative Party's conference in Birmingham.

Badenoch articulated a long-term ambition for a Conservative government to abolish IHT entirely, stating this would happen "as soon as we can afford it." However, she cautioned that immediate full abolition is not currently feasible due to existing spending commitments in areas such as defence, prisons, and the economy.

The proposals for IHT changes, which is levied on the value of an estate upon death, have drawn criticism from rival parties. These parties suggest the plan would primarily benefit wealthier individuals in the country. Badenoch's speech aimed to differentiate the Tories from Labour and Reform UK, positioning her party as a "no-nonsense" alternative.

These inheritance tax proposals come as the Conservative Party seeks to regain public trust and electoral support following a significant defeat in the 2024 general election. Badenoch acknowledged the party's current standing in the polls, comparing the situation to a shop window where potential customers like what they see but are not yet "buying."

In her address, Badenoch sought to rally party members and voters, emphasizing a renewed and changed Conservative Party. She drew a parallel to the successful brand revival of Marks and Spencer, suggesting the Tories must "learn from our mistakes, win back trust and make people feel good about our party again."

A notable moment during the speech was Badenoch's firm stance against forming an election deal with Reform UK, despite acknowledging many Reform voters as "our people" who the Conservatives "let down." She rejected calls to "unite the right," emphasizing that "character, conduct, and standards matter" and that people "deserve better."

Badenoch also alluded to broader societal issues, stating her opposition to a country run by individuals who question the national identity of her mixed-race children. She also took aim at Prime Minister Andy Burnham, likening him to "Paddington Bear" and accusing him of wishing problems away.

Speculation regarding potential changes to inheritance tax had been circulating in the days leading up to Badenoch's speech. The detailed announcement followed a lengthy address where she outlined her vision for the party's future and its path to rebuilding support.