Tories to Pledge Sweeping Deregulation and Tax Cuts in Economy Reset

Andrew Griffith, the Conservative shadow chancellor, will use the second day of his party's conference in Birmingham to set out an economic agenda centred on tax cuts, reduced regulation and cheaper housebuilding, describing the package as the "most ambitious deregulation project in a generation."

Griffith's address is expected to commit a future Conservative government to slashing red tape, lowering taxes and reducing the cost of building new homes, as the party attempts to rebuild its economic credibility after its heavy defeat at the 2024 general election. The speech is part of a broader effort by the Conservatives to persuade voters they can be trusted with the public finances once again, following repeated attacks from political opponents over their record in office between 2010 and 2024.

In prepared remarks, Griffith is expected to argue that no outside force will rescue Britain's economy and that only his party is willing to confront difficult truths. He will say the Conservatives want to deliver "cheaper homes, lower taxes, and less red tape," and will accuse Prime Minister Andy Burnham of pursuing what he characterises as a "socialist fever dream of the 1970s." The language signals a deliberate shift toward a smaller-state, supply-side economic message designed to contrast sharply with the current government's approach.

The deregulation push would extend to environmental and energy efficiency rules, including the future homes standard, which the Conservatives believe adds unnecessary cost to new housing. According to the party, removing such requirements could reduce the cost of delivering a new home by as much as £50,000, savings they expect would ultimately be passed on to buyers. The claim is likely to reignite debate over the trade-off between affordability and environmental standards in the housing market, an area where successive governments have struggled to balance competing priorities.

The party also plans to scrap section 106 agreements and the Community Infrastructure Levy, the mechanisms that currently require developers to fund local projects and services linked to new building. In their place, the Conservatives would introduce a single levy on developers, arguing that the current system causes delays and that a streamlined charge would ensure money is spent more effectively for the benefit of residents. Planning experts have long criticised the existing arrangements as slow and unpredictable, though proposals to replace them have historically run into objections from local authorities worried about losing control over developer contributions.

Another significant element of the package is the proposed abolition of Natural England and the Environment Agency, whose responsibilities would be transferred to the Department for Environment, Food and Rural Affairs. The Conservatives have been critical of both bodies, blaming Natural England for slowing housebuilding and the Environment Agency for shortcomings in flood prevention work. The proposal would represent one of the most substantial reorganisations of England's environmental governance in decades and is likely to alarm conservation groups, which argue that independent regulators are essential to protecting waterways, habitats and communities at risk of flooding.

Griffith is also expected to confirm that a Conservative government would scrap the Extended Producer Responsibility scheme, which obliges companies to cover the cost of collecting, recycling and disposing of the packaging they produce. The party contends the scheme places a burden on businesses and contributes to higher prices, and believes abandoning it could help bring down the cost of the weekly shop. Retailers and manufacturers have complained about the administrative complexity of the scheme, although supporters say it shifts the cost of waste from taxpayers to producers and encourages more sustainable packaging design.

On infrastructure, Griffith will say the next Conservative government would do "whatever it takes to end the delays and boost capacity by backing the third runway" at Heathrow Airport. Expansion plans were abandoned by the Conservative-led coalition in 2010, and the project was later championed by former chancellor Rachel Reeves as a means of stimulating economic growth after Labour took power. However, Burnham has declined to say whether he supports the runway since becoming prime minister, describing it as principally a matter for London and Londoners, a position that leaves the project's political future uncertain.

The shadow chancellor's speech follows the publication by Conservative leader Kemi Badenoch of a 100-page document setting out her guiding principles and how the party would govern if it wins the next general election. That document, alongside Monday's announcements, forms part of a wider attempt to present a coherent policy platform rather than a collection of isolated pledges, as the party seeks to move on from its historic 2024 defeat.

Chancellor John Healey said last week that all government promises would be "built on the rock of fiscal discipline" and that the Budget on 28 October would "give families and businesses a bit of breathing space." His remarks underline the fiscal constraints any opposition party faces in making tax-cutting commitments, and the Conservatives are likely to be pressed on how their proposals would be funded without jeopardising public services.

The plans drew immediate criticism from political rivals. Liberal Democrat deputy leader Daisy Cooper said the Conservatives had "cemented their position as a pointless anti-growth anti-business party" by rejecting closer ties with Europe, adding that no one could take their economic claims seriously given what she called a litany of fantasy-land financial pledges. Reform UK economy spokesman Robert Jenrick accused the Conservatives of "once again copying our policies," and claimed they were unable to match Reform's commitment to raise the tax-free personal allowance to £15,000.

During a series of speeches on Monday, Conservative shadow ministers are expected to expand on the proposals and offer further detail. The conference, held in Birmingham, provides the party with its most prominent platform of the year to communicate its direction to members, the media and the wider electorate. Whether the deregulation agenda can convert into renewed public trust remains the central question, particularly given the Conservatives' recent record in government and the scepticism expressed by opponents about the cost and feasibility of their plans.