Kemi Badenoch will tell the Conservative Party conference that Britain faces 'a battle for the soul of this nation' as she tries to revive a party that still trails both Labour and Reform UK in the polls.

Closing the four-day gathering in Birmingham on Wednesday, the Tory leader will argue that the gap between her party and Andy Burnham's Labour government goes 'to the very core of what kind of country we want to be'.

'There is a fight coming in British politics,' she is expected to say. 'A fight that we have not seen in this country for more than half a century. It will be a battle for the soul of this nation. A battle of ideas.'

Attack on Labour

According to extracts released in advance, Badenoch will accuse the Burnham government of wanting to 'wind back the clock to failed ideas of the past'.

'They believe economic growth is created by politicians. They think government knows best,' she will say. 'They think that your income, your pension and your savings are theirs to take and then hand out as they see fit.'

She will argue that while Labour will 'claim what they are doing is compassionate', the outcome will be higher taxes and a poorer country trapped in a 'doom loop'. Without better growth, she is expected to warn, 'something is going to break'.

By contrast, she will say, Conservatives believe that 'what people earn belongs to them, not government', and that growing the economy 'will be the central organising principle of the next Conservative government'.

Inheritance tax in focus

Badenoch is expected to place a cut to inheritance tax at the heart of the speech, a tax she has described as immoral. Reports before the speech suggested she would either reduce the 40% rate or raise the threshold at which it is paid.

The party has already used the conference to pledge £10bn for a UK air defence system and to propose cutting employer National Insurance contributions for workers aged 21 to 24, a policy aimed at encouraging firms to hire younger staff.

Labour is likely to press Badenoch on how any tax cuts would be paid for, pointing to the state of the public finances it inherited.

A changed tone

This year's conference has placed the economy at the top of the agenda, with less emphasis on the cultural debates that dominated recent gatherings. Senior figures see a sharpened economic message as the best route to win back voters who drifted to Reform UK and Labour.

On Tuesday Badenoch ruled out a coalition with Nigel Farage's party, saying that in the event of a hung parliament she would rather fight two general elections in quick succession than govern with Reform.

The stakes

The speech is one of the most important of her leadership. The Conservatives have struggled to recover since their heavy election defeat, and Badenoch faces persistent questions over whether she can lead them back into contention.

Her argument rests on the claim that voters are growing weary of rising taxes and sluggish growth, and that a clear choice between a smaller and a larger state will play to Conservative strengths.

Labour, which is preparing a budget later this month focused on the cost of living, argues that it is repairing public services and the public finances, and that Conservative tax cuts would put both at risk.

What to watch

Delegates and commentators will be looking for detail: how far any inheritance tax cut would go, how it would be funded, and whether Badenoch can offer a message that reaches beyond the conference hall.

For a party fighting on two fronts, against Labour in government and Reform on its right flank, the 'battle of ideas' she promises is also a battle for its own survival as the main party of opposition.