Shadow chancellor pledges annual tax cuts and mansion tax repeal

Shadow chancellor Andrew Griffith has outlined a plan to eliminate at least one tax in every budget if the Conservative Party returns to power, with the proposed high value council tax surcharge identified as a primary target. Speaking at the party conference in Birmingham, Griffith stated that lower, simpler and fairer taxation would serve as his personal guiding principle. However, he emphasised that such reductions would only be implemented when the public finances allow, adhering to a fiscal framework designed to balance deficit reduction with economic growth measures.

The shadow chancellor specifically targeted the high value council tax surcharge, a levy set to take effect from 2028 for owners of properties in England valued at more than two million pounds. Griffith described the measure as an anti-growth tax that would distort the housing market and remove incentives for home improvements. He characterised the Labour government’s proposal as a vindictive raid on family homes, contrasting it with the Conservative commitment to scrap the scheme. The party’s broader fiscal strategy involves ensuring that at least half of all identified savings go towards deficit reduction, with the remaining half allocated to tax cuts and pro-growth initiatives.

In his address, Griffith drew parallels between his approach and that of former chancellor Nigel Lawson, expressing an ambition to prioritise tax cuts that enhance growth, improve work incentives and simplify the system. He also announced that the Conservative Party would scrap the extended packaging responsibility scheme, which currently requires firms to cover the costs of collecting, recycling and disposing of the packaging they produce. Griffith dismissed this regulation as a relic of the old Conservative Party, signalling a shift in policy under the leadership of Kemi Badenoch.

The shadow chancellor confirmed that the Conservatives would maintain the pensions triple lock, a policy that Prime Minister Andy Burnham has proposed changing. This stance contrasts with previous comments by Griffith, who in 2021 described the triple lock as unfair, and with views expressed by senior Conservatives including former chancellor Jeremy Hunt and shadow foreign secretary Tom Tugendhat, who have suggested the current arrangement is unsustainable. Griffith’s assurance on this issue was made during an interview on BBC Breakfast prior to his main stage speech.

Beyond taxation, the shadow cabinet announced a series of measures intended to free up businesses and stimulate economic growth. These proposals include ditching environmental and energy efficiency regulations, such as the future homes standard. The party also stated it would support the construction of a third runway at Heathrow Airport, reversing a decision made by the coalition government in 2010 to scrap expansion plans. Additionally, the Conservatives aim to replace section 106 agreements and the community infrastructure levy with a single levy for developers, and they have called for the abolition of Natural England and the Environment Agency, with their functions to be transferred to the department for environment, food and rural affairs.

The announcements have drawn criticism from political opponents and industry groups. Prospect general secretary Mike Clancy argued that scrapping these regulators would not solve planning delays, which are often caused by a lack of resources, and called for restored funding instead. Liberal Democrat deputy leader Daisy Cooper accused the Conservatives of cementing their position as an anti-growth party by rejecting closer ties with Europe. Labour party chairwoman Bridget Phillipson stated that the Conservatives had failed to grow the economy during their time in office, while Reform UK economy spokesman Robert Jenrick accused the party of copying their policies without matching their pledge to raise the tax-free personal allowance. Green party MP Ellie Chowns criticised the plan to scrap rules that secure affordable homes and community infrastructure, describing it as a gift to developers that leaves communities to pick up the bill.