The Conservative Party, seeking to regain public trust after their defeat in the 2024 general election, has outlined plans for potential tax cuts if they return to power. Shadow Chancellor Andrew Griffith, speaking at the party’s Birmingham conference, expressed his intention to eliminate at least one tax each budget, specifically targeting the “mansion tax”.
Pledges to Reform Taxation and Reduce Burdens
Griffith highlighted his vision of “lower, simpler and fairer taxes” as crucial to economic prosperity, though he emphasised that any tax reductions would occur only when financially feasible. One of the taxes in his sights is the High Value Council Tax Surcharge (HVCTS), set to be enforced in 2028 on properties valued over £2 million in England. He criticised the HVCTS as a deterrent to housing market growth and property improvements.
In addition to the mansion tax, the Conservatives plan to abolish the Extended Packaging Responsibility (EPR) scheme, which obligates businesses to cover packaging waste management costs. Griffith reflected on a change in approach under Kemi Badenoch’s leadership, stating such regulations are reminiscent of an outdated Conservative era.
Criticism from Opposition and Internal Challenges
The opposition parties have been vocal in their criticism. Labour has accused the Conservatives of economic mismanagement during their years in power from 2010 to 2024, describing them as “completely failed” in fostering economic growth. Liberal Democrat deputy leader Daisy Cooper dismissed the Conservatives’ economic promises as unrealistic, while the Green Party’s Ellie Chowns opposed the proposed deregulation plans, warning they could favour developers at the expense of community needs.
Within the party, there is some division over existing financial policies. The issue of maintaining the pensions triple lock, which Prime Minister Andy Burnham is contemplating altering, was addressed by Griffith, who confirmed its retention. Notably, Griffith had previously criticised the triple lock in a 2021 article as “unfair”. Prominent party figures, including former Chancellor Jeremy Hunt, have also suggested its unsustainability.
Plans for Infrastructure and Regulatory Changes
The Conservatives unveiled further proposals aimed at fostering business growth, including discarding certain environmental and energy efficiency regulations like the future homes standard. Reforms would also include supporting a third runway at Heathrow Airport and introducing a unified levy for developers, replacing the existing system of section 106 agreements and the Community Infrastructure Levy.
As part of a broader infrastructural reform agenda, the party intends to abolish Natural England and the Environment Agency, transferring their responsibilities to the Department for the Environment, Food and Rural Affairs (Defra). This plan faced criticism from unions representing affected staff, with Prospect general secretary Mike Clancy calling for funding reinstatement rather than abolishing the agencies.
Fiscal Responsibility and Economic Growth
Reform UK’s Robert Jenrick alleged the Conservatives are mimicking their policy plans, but highlighted the Tories’ inability to match the commitment to elevate the tax-free personal allowance to £15,000. Meanwhile, Chancellor John Healey reiterated the current government’s commitment to fiscal discipline, with upcoming budget plans promising relief for families and businesses.
Reporting based on coverage first published by bbc.co.uk.