The Conservative Party’s proposal to abolish stamp duty on primary home sales will largely benefit London and the wealthiest homeowners, according to the Social Market Foundation (SMF).
Kemi Badenoch, the Tory leader, announced at the party’s annual conference that a future Conservative government would scrap stamp duty on residential property purchases above £125,000 in England and Northern Ireland, a policy estimated to cost £9 billion annually.
She argued the move would stimulate home ownership and revive the housing market.
However, SMF director, Theo Bertram warned that while the plan could remove barriers to mobility and downsizing, it would disproportionately benefit homeowners and those in the South East and London.
Bertram urged the Tories to pair the policy with council tax reform or a property-based levy to make it “fairer and more sustainable.”
The proposal includes a £5,000 rebate for first-time buyers and forms part of Badenoch’s wider attempt to rebuild Conservative credibility on the economy after last year’s general election defeat.
She also unveiled a new “golden rule” for public spending, pledging that half of all savings from cuts would reduce the national deficit, with the rest funding growth-boosting tax relief.
Labour leader Keir Starmer criticised the Conservatives’ economic platform, saying the party has no answers for the challenges facing working people.
TUC General Secretary Paul Nowak added that the Tories were becoming ever more irrelevant.
Meanwhile, ministers are negotiating with the pharmaceutical industry over proposals to raise NHS payments for medicines by up to 25% amid a transatlantic pricing dispute.
The political debate comes as Prime Minister Starmer travels to India, promising to strengthen trade ties, while Scottish First Minister John Swinney renewed calls for independence ahead of the SNP’s conference in Aberdeen.
