Kemi Badenoch was lauded for her bold plan to axe stamp duty today as she moved to silence her internal party critics with a rousing speech to close Tory conference.
Mrs Badenoch delivered a barnstorming rallying cry to Tories that culminated in a fresh pledge to ditch the hated purchase tax on family homes to revive the dream of ownership.
The party is proposing an end to the charges for primary residences, amounting to a £4.5billion tax cut paid for by trimming benefit handouts.
Mrs Badenoch insisted only the Tories can 'save Britain' as she sought to fend off talk of a coup by MPs amid dire poll ratings and fears the party is finished.
She told activists - who cheered her for 20 minutes during her speech - that only 'timeless' Tory principles can roll back the 'darkest days' of 'decline', by stabilising the economy and overhauling society's 'broken model'.
Her surprise move on stamp duty was welcomed by economists and the property expert Kirstie Allsopp, who said it was 'brilliant and bold' and told Labour Chancellor Rachel Reeves to copy it.
'Much has been written about how damaging stamp duty is, taxing people when they are moving house, often for work, education, relationship breakdown, including elderly family etc,' the Location, Location, Location host said.
'Kemi Badenoch is correcting a mistake made by both Tory and Labour chancellors.'
As the Conservatives battle to prove they are still in the hunt for power:
- Mrs Badenoch delivered an extraordinary jibe at Mr Farage offering 'free' things to voters, warning that getting into a direct fight with Reform would be like 'wrestling a pig'. 'You both get dirty and the pig likes it,' she added.
- She accused Sir Keir of 'deliberately' collapsing the China spying trial. The government has insisted it was an independent decision by prosecutors;
- Mrs Badenoch condemned time 'wasted' by police on non-crime hate incidents;
- She committed the Conservatives to banning doctors from striking if they return to government;
- The leader said she was not a climate sceptic but she is a 'Net Zero sceptic' as she confirmed the Tories want to shave £165 a year off energy bills by axing green levies;
- Mrs Badenoch was preceded on the stage by the national anthem being played - after a backlash that it was not going to be used at the end of the conference.
Kemi Badenoch closed the conference in Manchester with an impassioned speech arguing that the Conservatives are not finished
Mrs Badenoch was embraced by her husband Hamish after electrifying the Tory faithful with her vision for their revival
Her surprise move on stamp duty was welcomed by economists and the property expert Kirstie Allsopp , who said it was 'brilliant and bold' and told Labour Chancellor Rachel Reeves to copy it.
Mrs Badenoch said a £47billion clampdown on benefits and wasteful spending would let the government reduce its debt mountain at the same time as scrapping Labour's hated taxes - including VAT on private school fees and the farms inheritance tax raid.
She said Motability vehicles would be restricted to those with disabilities rather than conditions such as ADHD.
Mrs Badenoch contrasted her tough approach on spending and benefits with Reform's platform of 'free' giveaways. Tories believe that Mr Farage's efforts to move into Labour territory have opened ground for them.
'Stamp duty is a bad tax', she said. 'We must free up our housing market, because a society where no one can afford to buy or move is a society where social mobility is dead.'
She said she had looked at options for changing thresholds for stamp duty and decided it was not enough.
'The next Conservative government will abolish stamp duty on your home,' she said.
The Adam Smith Instuitute (ASI) suggested that abolishing stamp duty could lead to 467,000 extra house sales per year.
Economist Mitchell Palmer said: 'Almost every economist agrees that stamp duty land tax is one of the most destructive taxes on the books.
'It traps older people in homes that are too big or expensive for them, and younger people out of the homes they need to start a family. It also makes it more difficult for British people to pursue new opportunities, limiting their ability to increase their incomes and contribute to national productivity.'
Stamp duty applies in England and Northern Ireland, with separate property taxes in Scotland and Wales.
The tax is a 'slab' tax, with a 'nil rate' band applying on the first £125,000 and different rates applying on other portions of the property price.
First-time buyers have a higher 'nil rate' band of £300,000.
Aides were jubilant about the performance, following fears that Mrs Badenoch's first conference speech might be her last with a local elections meltdown looming in May.
One Tory veteran said that potential leadership rivals like Robert Jenrick had been put 'back in their box'.
Another told the Daily Mail that Mrs Badenoch had quashed leadership jostling and signalled a turning point for the party. 'I think it will be seen as the most significant speech since Cameron in 2007,' they said.
Shadow cabinet ministers gave a rapturous reception to Mrs Badenoch's conference speech
Mrs Badenoch was congratulated by one of her biggest supporters after the speech in Manchester - 7ft 2in student James McAlpine
Mrs Badenoch said the challenge was to 'secure our borders and restore our strength so our children inherit a country that works'.
Mrs Badenoch told the hall that she was proud to be leading 'the only party that can meet the test of our generation'.
'Britain is stagnating while the world around us moves on,' she warned.
Mrs Badenoch pointed to the Tories' historic achievements - including setting up the modern police force and Brexit.
She said: 'Every generation must face its test.
'In the 1940s, our test was to defeat fascism and ensure victory of freedom.
'In the 1980s, it was to banish socialism and deliver prosperity.
'In the 2020s, our test is to restore a strong economy, secure our borders and rebuild Britain's strength so our children inherit a country that works.
'Ladies and gentlemen, conference, thank you. Thank you for standing by the only party that can meet the test of our generation, the only party that can deliver a stronger economy and stronger borders.'
Mrs Badenoch pledged to 'bring down the taxes stifling our economy' and reverse Labour's 'borrowing and tax doom loop'.
She unveiled plans for a new 'golden rule' which will require half of every pound saved to be used for cutting the deficit, with the other half spent on tax cuts and boosting the economy.
Mrs Badenoch said her political rivals were busy 'shaking the same magic money tree'.
'Last year, the public voted for change, but all they have been given is change for the worse,' she said.
'And because they are still angry with us, parties that in normal times will never be seen as a serious option for government are gaining ground, making promises they will never be able to keep.
'Let's look at what's on offer out there for all those disappointed by Labour.
'Reform, promising free beer tomorrow; Jeremy Corbyn, promising free jam; Lib Dems, promising free lettuce; all of them promising more spending, blowing up the public finances.
'Whether it's Starmer, Farage, Corbyn or Davey, all these men are shaking the same magic money tree, following the same failed playbook, no plans for growth, no honesty about the scale of the challenges.
'And it always leads to the same result, more government, more taxes, more debt.'
She added: 'It's irresponsible, it's cynical, and it's why Britain needs Conservatives back in charge.
'But we can't beat them, simply by attacking them.
'As George Bernard Shaw said. 'Never wrestle with a pig. You both get dirty, and the pig likes it.''
Effectively declaring war on benefits culture, Mrs Badenoch complained that '5,000 new people are signing on every single day'.
'Many are young people, who are losing the chance to make something of themselves, never knowing what it's like to pay their own way,' she said.
Ms Badenoch said motability cars are 'not for people with ADHD'.
'We will restrict motability vehicles to people with serious disabilities. Those cars are not for people with ADHD,' she said.
She also criticised time 'wasted' by police on non-crime hate incidents.
'Conference, we are going to free the police to protect the public, not to chase political correctness,' she said.
The Tories have been sounding tough noises on illegal immigration, including committing to quit the European Convention on Human Rights (ECHR) and deport 750,000 people with no right to be in this country.
However, Tory strategists believe the party's best hope lies in restoring its battered economic credentials.
In her keynote speech, Mrs Badenoch said the Conservative approach 'starts with fiscal responsibility', adding: 'We have to get the deficit down.'
'Over the next decade, Rachel Reeves is going to double the deficit with her borrowing and tax doom loop,' she will say.
'It's not sustainable and it's not fair. It is stealing from our children and grandchildren. And Conservatives will put a stop to it.'
Shadow chancellor Mel Stride announced plans this week to slash government spending by £47billion by clamping down on welfare, reducing the size of the civil service by a quarter and cutting billions from foreign aid.
According to Mrs Badenoch, at least half the money saved will be used to reduce the deficit, with the rest spent on cutting tax or boosting the economy.
Pledging a new 'golden economic rule', she said: 'Every pound we save will be put to work. At least half will go towards cutting the deficit. Because living within our means is our first priority.
'With the rest, we are going to get our economy growing again. And bring down the taxes stifling our economy.'
The Conservatives have set out plans this week to scrap business rates for 250,000 pubs and high street shops at a cost of £4billion.
A further £2.8 billion has been allocated to fund a new 'first job bonus' which would offer young people entering the workplace up to £5,000 towards their first home.
But, even with £24billion used to cut the UK's deficit, this would still leave up to £16billion available for potential further tax cuts.
The Tory leader pledged to curb funding for 'low quality' degree courses and use the proceeds to double the number of apprenticeships.
Mrs Badenoch warned that too many courses are drawing students into a 'debt trap' in which they will never earn enough to pay back their tuition fees.
She cited analysis suggesting that almost a third of graduates now see 'no economic return' on their years of study, adding: 'Every year thousands of young people go off to university, but leave with crippling loans and no real prospects.
'We will shut down these rip-off courses and use the money to double the apprenticeship budget. Giving thousands more young people the chance of a proper start in life.'
Mrs Badenoch and her husband waved for the cameras after her successful turn on stage
Tories believe that Nigel Farage's efforts to move into Labour territory have opened ground for them
Mrs Badenoch with her husband Hamish on the way to deliver her big speech
Tory sources highlighted figures showing that many graduates in areas like the performing arts, media studies earn below the national average wage.
Under Tory plans, funding for courses whose graduates go on to earn low wages would be capped. The savings would be used to increase the number of apprenticeship places on offer.
Student number caps were fully lifted in England in 2015, leading to a record number of students being accepted onto university courses that year.
By reintroducing and gradually lowering the caps, the Conservatives hope to limit loan repayment losses through a reduction in the number of people going to university.
The party said the policy would see 100,000 fewer people per year going to university by the end of the next parliament, saving £3 billion - enough to fund a doubling of the apprenticeship budget.
Labour chairwoman Anna Turley said Mrs Badenoch was in 'complete denial'.
'The public saw the Tories' disastrous blueprint for Britain across their 14 years of failure in government – and the Conservatives still won't apologise for the mess they left,' she said.
'Kemi Badenoch set herself a new 'golden economic rule' today and broke it immediately. It's the same old Tories, with the same old policies without a plan. They didn't work then and you can't trust them now.
'Only Labour can renew Britain. Real wages have grown more in the first 10 months of this Labour Government than in the first 10 years under the Tories. Only Labour can be trusted to grow our economy, secure our borders, and make working people better off.'
