Conservatives Plan to Scrap Labour Grocery Tax and Cut Housing Costs
The Conservative Party has pledged to eliminate a Labour-imposed grocery tax that is contributing to higher food and drink prices at checkouts. This announcement is part of a broader set of policies aimed at alleviating the cost-of-living crisis, unveiled by Shadow Chancellor Andrew Griffith at the Conservative conference in Birmingham. Griffith emphasized that only his party can restore economic stability and ensure a prosperous future for the next generation.
Other key initiatives include reducing regulatory hurdles in the construction industry to lower new home prices by up to £50,000 and supporting the expansion of Heathrow Airport with a third runway. Griffith argued that this would facilitate more affordable flights. The Conservatives also aim to scrap Labour's Extended Producer Responsibility (EPR) scheme, a so-called green packaging tax that has imposed £1.6 billion in costs on shops and manufacturers. The Bank of England warned in August 2025 that this tax could add 0.5% to food inflation, a concern echoed by industry leaders.
Critics of the EPR scheme, including Helen Dickinson of the British Retail Consortium and Karen Betts of the Food and Drink Federation, highlighted that the tax has led to overlapping costs and higher prices for consumers. Griffith also vowed to remove net-zero housing red tape, which he claims is driving up housing costs, and to streamline the UK tax system, calling it 'one of the worst in the world.' Additionally, the Conservatives plan to accelerate the development of new nuclear power stations and approve North Sea oil and gas fields to cut fuel bills.
The announcement has drawn mixed reactions. While business leaders welcomed the deregulation efforts, campaign group the Countryside Alliance expressed concerns over the proposed scrapping of quangos like Natural England, fearing it could impact rural communities. Heathrow's CEO, Thomas Woldbye, supported the third runway plan, stating it would drive economic growth across the UK.