Kemi Badenoch has said couples will be able to leave £1 million tax-free to their children under the Conservatives.

The Tory leader told the Conservative party conference that it is her ambition to abolish inheritance tax altogether after announcing the removal of inheritance tax from family homes.

She said: “But that’s not all, on top of that couples will be able to leave an additional £1 million tax-free.

“These changes mean every inheritance tax bill will be cut and the number of families paying inheritance tax will fall by more than half.

“My ambition is to abolish inheritance tax altogether, as soon as we can afford it. That can only happen with a Conservative government.

“I believe the people who work hard and save should be rewarded for that effort. So, this is my guarantee: no stamp duty when you buy your home, no mansion tax when you live in your home, and no inheritance tax on your home when you pass it to your children or grandchildren.

“That is what the next Conservative government will deliver.”

The Tories are not pledging to abolish inheritance tax, Kemi Badenoch has said.

She said: “We are not abolishing inheritance tax at this conference. I know you’re disappointed.

“We could do it. We could do it, but not if we want to keep our country safe with a ‘Britannia Shield’.

“Not if we also want to keep people safe with 50,000 new prison places.

“Not if we want to cut the deficit, threatening to bankrupt our country and burdening our children.

“Governing is about choices, tough choices, and the Conservatives will not announce a tax cut without telling you how we are going to pay for it.”

Kemi Badenoch had been flirting with the idea of abolishing inheritance tax all conference but has confirmed in her speech that she will not completely scrap it.

Nevertheless, the more moderate measures of exempting family homes and the first £1 million in cash received a huge cheer.

But essentially this announcement was a contorted attempt to show that she is fiscally responsible with her tax cuts, making much of the need to bring down the deficit, pay for 50,000 extra prison places and the Britannia shield drone defence.

It provides clear blue water with Labour but is still an odd way to deliver what should be a big moment.

Kemi Badenoch promised to scrap inheritance tax on family homes and raise the threshold to £1m for a couple – a promise that was met with whoops and cheers from the audience, who stood up to applaud the policy.

She said: “The Labour Party think it is selfish to pass on what you have earned to your children; we don't.”

Ms Badenoch added: “What is the thing that most people want to pass on to their children and grandchildren? It is their family home.

“Conference: The Conservatives are and always have been the party of home ownership. We understand why putting roots down and having a stake in society matters.

“Our homes are where we watch our children take their first steps. They are where we gather every Christmas to put up the same decorations. Passing on your home to your family is one of the most human instincts of all.”

It comes after growing pressure on the Tory leader to slash inheritance tax, dubbed the “death tax” by its critics.

Kemi Badenoch has urged the prime minister to “stop faffing about” and build a third runway at Heathrow.

Ms Badenoch pledged to make growing the economy the central principle of the next Conservative government as she told the conference: “I’ve got a plan to get Britain growing again, the kind of growth that you can actually see and feel.”

The Tory leader added: “Growth looks like graduates choosing between jobs instead of choosing between job centres.

“There will be construction jobs because we will have scrapped obscure rules like the Aarhus Convention, how many of you have heard about that? That’s what activists use to block development.

“When we are in charge, no one from Natural England will turn up with a clipboard to count all the bats and newts.

“It’s time for us to build new nuclear and not worry about whether the fish can have discos. And, yes, it’s time to finally build that third runway at Heathrow.

“Last week, Andy Burnham said Heathrow expansion was a matter for London. No, prime minister, you are not the mayor of Manchester any more. The future of our country’s busiest airport is not a regional matter, it is a matter for you. So, stop faffing about and let’s get this runway built.”

Kemi Badenoch has criticised the Green Party membership’s decision to back a motion declaring that “Zionism is racism”, adding: “Shame on Zack Polanski.”

The Conservative Party leader said: “Back in the day, we were the ones who put out a poster saying – ‘Labour say he’s Black, we say he’s British’. We are still that same party.

“I don’t know whether you’ve noticed, but I am Black, I am British.

“I am proud of my country. I’m proud of our history, all that we have done and all that we will do in the world.

“Our best days are not behind us and we will not let this country go backwards.

“You know what else is taking us backwards? The disgraceful antisemitism we saw at the Green Party conference in Brighton last weekend.

“They are seeking to erase Jewish identity. Shame on the Green Party and shame on (the party’s leader) Zack Polanski.”

The Conservative Party “stands with the Jewish people”, its leader has said, as she reflected on the October 7 attacks in 2023.

On stage at her party’s conference in Birmingham, Mrs Badenoch said: “Exactly three years ago today, we saw the horrific October 7 attacks, the worst slaughter of Jews since the Holocaust.

“The Conservative Party stands with the Jewish people.

“We will never stop fighting antisemitism.”