Majority Support Kemi Badenoch’s £9 Billion Plan to Abolish Stamp Duty

The recent poll indicating that nearly two-thirds of Britons support Kemi Badenoch‘s proposal to abolish stamp duty has intensified pressure on opposition leader Rachel Reeves to respond. Unveiled at the Conservative Party conference, Badenoch’s ambitious plan, valued at £9 billion, aims to eliminate a tax widely criticized for hindering home ownership.

According to a YouGov survey conducted with over 4,000 voters, 63 percent are in favor of scrapping the stamp duty, while only 13 percent oppose it. The proposal enjoys strong backing among Conservative voters, with an impressive support rate of 80 percent. Interestingly, Labour supporters also show considerable enthusiasm, with 59 percent endorsing the abolition.

Despite this public approval, Labour MPs have voiced strong opposition to the initiative. One member described the proposal as a potential catalyst for escalating house prices instead of alleviating housing challenges. Pat McFadden, the Secretary of State for Work and Pensions, criticized the Conservative plan, questioning its financial viability and dismissing it as an attempt to gain short-term popularity.

The proposed abolition of stamp duty would impact around 600,000 property transactions annually, offering substantial savings for homebuyers during a financially challenging period. The tax is often seen as a barrier to home ownership, and its removal could facilitate easier movement within the housing market.

In response to the Conservative plan, sources within the Treasury suggest that Chancellor Rachel Reeves may consider a reform of property taxes in the upcoming Budget. Speculation includes the introduction of a “mansion tax,” which would replace stamp duty with an annual levy on higher-value homes. This approach might appeal to Labour’s base while addressing concerns about wealth distribution.

Critics of Badenoch’s plan, such as Daisy Cooper, the Liberal Democrat Treasury spokesperson, have dismissed her proposals as overly simplistic, likening them to former Prime Minister Liz Truss‘s policies. Yet, even within her party, Lib Dem voters have shown strong support for the abolition, with a 71 to 11 margin.

Shadow Chancellor Sir Mel Stride has argued that the removal of stamp duty could bolster the economy by making housing more accessible. He emphasized that the proposed tax cuts would be financed by £47 billion in anticipated spending reductions, including significant cuts to welfare expenditures.

As the debate continues, the public’s response to Badenoch’s proposal may influence the political landscape ahead of the next general election. With substantial financial implications and a divided political response, the discussion surrounding stamp duty is set to remain a focal point in UK politics.