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Shadow Chancellor Unveils 'Most Ambitious' Tory Deregulation Plan to Cut Taxes, Red Tape and Homebuilding Costs

Shadow Chancellor Unveils 'Most Ambitious' Tory Deregulation Plan to Cut Taxes, Red Tape and Homebuilding Costs
[PA Media]

At the Conservative conference in Birmingham, shadow chancellor Andrew Griffith outlined a sweeping deregulation agenda designed to cut taxes, reduce bureaucracy and lower the cost of building homes. Key measures include abolishing Natural England and the Environment Agency, replacing section 106 and the Community Infrastructure Levy with a single developer levy, and scrapping the Extended Producer Responsibility packaging scheme. The party claims these steps could cut new home build costs by up to £50,000; opponents warn the proposals risk weakening environmental protections and are politically contentious.

Conservative shadow chancellor Andrew Griffith used day two of the party conference in Birmingham to set out a wide-ranging package of economic proposals aimed at lowering taxes, slashing regulation and reducing the cost of building new homes.

Key Proposals

Griffith said the Conservatives would pursue what he called the “most ambitious deregulation project in a generation”. Major elements of the agenda include:

  • Abolishing Natural England and the Environment Agency and transferring their core functions into the Department for Environment, Food and Rural Affairs (Defra).
  • Replacing section 106 agreements and the Community Infrastructure Levy (CIL) with a single developer levy intended to speed up planning and improve how contributions are allocated to local communities.
  • Scrapping the Extended Producer Responsibility (EPR) packaging scheme so firms would no longer pay for collecting, recycling and disposing of the packaging they produce — a move the party says would reduce costs for businesses and potentially lower food bills.
  • Removing certain environmental and energy-efficiency regulations, including the future homes standard, which the party says could cut the cost of delivering a new home by as much as £50,000.
  • Backing expansion at Heathrow Airport, with a commitment to do "whatever it takes" to end delays and support the third runway.

Political Context and Messaging

The speech followed the publication by Conservative leader Kemi Badenoch of a 100-page document setting out the party's guiding principles and how it would act if returned to government after the next general election. Griffith framed the pledge as a bid to restore economic credibility after the party's heavy defeat at the 2024 general election.

"No-one else is coming to save our economy. Only we can inject reality, tell the hard truths and make this a country we are proud to hand on to the next generation," Griffith said, accusing Prime Minister Andy Burnham of pursuing what he called a "socialist fever dream of the 1970s."

Opposition and Reaction

Labour chancellor John Healey responded that government promises must be "built on the rock of fiscal discipline," noting the upcoming Budget on 28 October would aim to give families and businesses "a bit of breathing space."

Critics across the political spectrum were quick to respond. 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 and warned voters not to trust the party's economic pledges. Reform UK figures accused the Tories of adopting similar policies to their own; Reform's economy spokesman said the Conservatives could not match Reform's pledge to raise the tax-free personal allowance to £15,000.

What Would Change Locally?

Supporters argue the single developer levy would remove planning delays caused by negotiating individual section 106 agreements and the CIL, speeding up delivery and ensuring funds are spent more effectively for residents. Opponents counter that abolishing specialist agencies and rolling back environmental standards could risk weaker protections and poorer oversight of flood prevention and conservation work.

Source: BBC reporting from the Conservative Party conference.

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