Kemi Badenoch has thrown down the gauntlet to Rachel Reeves by calling on the Chancellor to follow her lead by abolishing stamp duty.
Writing in the Mail on Sunday about her rapturously received pledge to scrap the property tax at the Tory party conference, the Conservative leader says: ‘Rachel Reeves would steal it if she has any sense, but we know she doesn’t.
‘She should look at the reaction to my stamp duty announcement and think very carefully about why it’s had a near-universal welcome.’
Mrs Badenoch’s announcement, which received a standing ovation in Manchester, has given her an eight-point bounce in her approval ratings.
According to a poll last night, while Mrs Badenoch is still in negative territory on minus 14 per cent, she has extended her lead over Sir Keir Starmer, with the Labour leader languishing on a net minus of 41 per cent.
But the Opinium survey still puts the Tories well behind Nigel Farage’s Reform UK, which is on 32 per cent.
Labour is on 22 per cent, with the Conservatives on 18 per cent.
The speech has also quelled – for the time being at least – talk of a leadership challenge, with one Tory MP saying they will now ‘reserve judgement’ until the new year.
Kemi Badenoch has thrown down the gauntlet to Rachel Reeves by calling on the Chancellor to follow her lead by abolishing stamp duty
Referring to Andy Burnham openly challenging Sir Keir Starmer for the Labour leadership, another added: ‘Nobody wants infighting now.
‘We can see how damaging it has been for Labour.’
Next month’s Budget will be another flash point for the Tory leader, who will head the response in the Commons to the Chancellor.
Ms Reeves is understood to be examining new taxes to impose in the Budget to fill a reported £30 billion fiscal black hole.
There is fresh speculation this will now include imposing Capital Gains Tax (CGT) on inherited assets, which would raise around £1 billion for the Exchequer.
Currently, the tax on profits is erased after death. A leaked report from bank Morgan Stanley claims that Ms Reeves wouldn’t have any ‘major issues’ imposing this drastic change politically – even though she has consistently said she wouldn’t be coming back for more tax rises.
Labour MP Torsten Bell, who is now leading Labour’s Budget preparations, was previously a major advocate for sweeping hikes in CGT.
As director of the Resolution Foundation, he pushed for this exact policy.
However, officials insist that they are keeping to Labour’s manifesto promise by ‘protecting payslips’.
Shadow Chancellor Sir Mel Stride said: ‘Imposing Capital Gains Tax at death is not just a tax rise – it’s double taxation on grieving families, and will discourage people from investing in the long-term assets that drive our economy.
He added: ‘Rachel Reeves doesn’t need to introduce a new death tax – she needs to control spending.’
