Kemi Badenoch, leader of the opposition Conservatives, has expressed support for a flat income tax rate, calling it an “attractive idea” that a Conservative government would aim for. Speaking at an event protesting inheritance tax changes, Badenoch stated that such a tax system would be pursued after “rewiring the economy.”

A flat tax would raise taxes for basic ratepayers but significantly lower them for higher earners, making it fiscally neutral. However, Badenoch acknowledged that the U.K. economy needs significant restructuring before such a system could be implemented. She emphasized the need to improve productivity and reduce the tax and regulatory burden, particularly for new businesses.

This is not the first time the Conservatives have discussed a flat tax. Former shadow chancellor George Osborne and Greg Hands, ex-chief secretary to the Treasury, have both supported the idea of a single tax rate for all earners.

Currently, most developed nations use a graduated tax system, where higher earners pay a higher percentage of their income in tax. However, over 20 countries, including Hungary and Romania, have adopted a flat tax system.

At the event, other Conservative figures, including shadow environment secretary Victoria Atkins, vowed to reverse Labour’s tax changes, particularly those affecting farming families and small businesses. Liberal Democrats, including Tim Farron, strongly opposed the changes, arguing that they unfairly target small family farms.