Kemi Badenoch is preparing to unveil cuts to inheritance tax in her major speech at the Conservative Party conference as her party believes it can capitalise on Andy Burnham’s turn to the left.

The briefing came as her new shadow chancellor Andrew Griffith pledged to slash a series of regulations and taxes if he were to take control of the Treasury.

Ms Badenoch’s expected announcement comes a year after her 2025 conference promise to abolish stamp duty for buying homes in another attempt to rebuild her party.

But with the Tories still languishing in third place in the polls average about 20 per cent behind both Labour and Reform, the Tory fightback seems a long way off at a conference that has yet to spark to life.

The Tory leader suggested on Sunday that reducing inheritance tax would be "morally right", and is now reportedly set to place tax cuts at the heart of her address on Wednesday.

A 40 per cent inheritance tax is currently charged on most estates valued over £325,000, or £500,000 on homes left to children.

She also defended plans to end the cliff face for parents in work who lose childcare allowance when they start to earn £100,000.

The move to the right fiscally is being justified by shadow cabinet members who believe Mr Burnham’s speech to the Labour conference in Liverpool last week has given them “space to make the case for more tax cuts.”

One senior Tory told : “When we are faced with a return to the 1970s and a command economy for socialists it really allows us to push a tax cutting deregulating agenda more than if we were facing someone like Tony Blair.”

In his speech, shadow chancellor Andrew Griffith hailed a new plan to bring down public spending saying that the Conservatives would aim to scrap “at least one tax every budget.”.

He said: “I didn’t come here to raise taxes – I came to lower them.

“No country in history has ever taxed its way to prosperity, so we will cut taxes, but only when we can afford to do so, and always saying clearly how we will fund that within our golden economic rule.”

He added: “Like Nigel Lawson, it’s my ambition to scrap at least one tax every budget. What would we prioritise? There’s a lot.

“Tax cuts that help growth, tax cuts that improve incentives to work, tax cuts that make life simpler and fairer.”

He also announced the Tories would scrap the packaging tax, which he admitted “most people have never heard of” but that he insisted damaged businesses.

Mr Griffiths has also unveiled plans to scrap public bodies like Natural England and the Environment Agency which he says are blocking housebuilding and economic growth.

Earlier, he confirmed both he and Ms Badenoch “ultimately” want to remove inheritance tax, but said the party would first need to ensure the move was funded.

“There’s lots of things that we would like to do, but the job of chancellor is to make sure that those can be paid for,” he told Sky News.

“We’re going to have a very difficult situation. We won’t be able to do everything that we want to do on day one.”

But it comes amid a row with Labour chair Bridget Phillipson who has accused Ms Badenoch of going after the poorest and wanting to scrap the minimum wage with comments in her document published for the conference, .

Ms Badenoch wrote: “Britain took the wrong way in the late 1990s when Labour governments came to believe that prosperity could be mandated by ministers. If wages were too low, ministers could mandate them higher and if investment was insufficient, they could direct savings."

Ms Phillipson said: “Kemi Badenoch needs to explain why she is so unhappy that workers were paid a minimum of £3.60 per hour – or does she think they should be paid less than that now?”

The inheritance tax is in Ms Badenoch’s sights because of the way that the threshold has been frozen for almost a decade, which has seen an increase of estates being considered above the cut off value.

According to , Mrs Badenoch is expected to announce either a cut to the 40 per cent rate or an increase to the threshold, in a bid to win back traditional Tory voters who have left the party in recent years.

She is said to not be considering a complete abolition of the tax, and will reportedly cut the welfare bill in order to pay for part of the cuts.

A spokesperson told : “This is pure speculation. Kemi Badenoch has said multiple times that she would like to abolish inheritance tax, but she must find the savings first. That position hasn’t changed.”

has contacted the Conservative Party.

Speaking to ahead of the Birmingham gathering, Mrs Badenoch was asked if she intended to scrap the tax entirely.

She replied: "It is morally right that people don’t get taxed twice. It is morally right that if you work hard and want to give something to your children the government doesn’t take it away."

Mrs Badenoch later added: "I am not going to announce tax cuts unless we can show how we pay for them… tax cuts are a good thing but you’ve got to be fiscally responsible."