Conservative leader Kemi Badenoch will say there is a “battle of ideas” looming in British politics when she delivers a speech on the final day of her party’s annual conference on Wednesday.

Badenoch is expected to tell delegates in Birmingham that the differences between her party and the Labour government go “to the very core of what kind of country we want to be”.

This week the Tory leader has been seeking to re-frame the way the public views her party, which has yet to recover in the polls since the last election.

The party has already pledged £10bn for a UK air defence system, and proposed cuts to the rate of employer National Insurance contributions for those aged 21 to 24.

There is also speculation that Badenoch could propose changes to inheritance tax. According to the Times, Badenoch is due to announce a cut to the 40% rate of the tax.

That rate applies to a person’s estate worth more than £325,000, or £500,000 if a home is left to children or grandchildren. Married or civil partners can also transfer assets between each other.

In 2023-24 inheritance tax was paid on 4.72% of estates and raised around £7bn for the government.

Asked if Badenoch would announce a new policy on the tax, Conservative deputy leader Alex Burghart told BBC Breakfast: “Kemi has said she’d like to abolish inheritance tax but it’s very important we can afford any announcement we can make.

“That is why she has asked Andrew Griffith, the shadow chancellor, to see what is possible – when that work is finished we will make an announcement.”

The Conservatives are trailing Labour and Reform UK in opinion polls and have yet to recover from their historic defeat at the 2024 general election.

During her main conference speech, Badenoch, whose personal poll ratings are higher than those of her party, will pitch the fight against Labour at the next general election as “a battle for the soul of this nation”.

She will say there is now a clear distinction between the Conservatives and Labour under Prime Minister Andy Burnham.

According to extracts released in advance, Badenoch will say Burnham’s government wants to “wind back the clock to failed ideas of the past”.

“They believe economic growth is created by politicians. They think government knows best.

“They think that your income, your pension and your savings are theirs to take and then hand out as they see fit.”

Badenoch will add that Labour will “claim what they are doing is compassionate”, but the result will be higher taxes and a poorer country caught in a “doom loop”.

By contrast, Conservatives believe “what people earn belongs to them, not government”, Badenoch will say – adding that growing the economy “will be the central organising principle of the next Conservative government”.

Earlier this week, Labour said the Tories “completely failed at every turn” to grow the economy during their 14 years in power.

Chancellor John Healey said all promises the government made would be “built on the rock of fiscal discipline” and the Budget on 28 October would “give families and businesses a bit of breathing space”.

The Conservatives have laid out a number of plans during its autumn conference for if it enters government at the next general election.

On Tuesday, Badenoch said she was proposing cutting the rate of employer National Insurance (NI) contributions on earnings for those aged 21 to 24 from 15% to 7.5%.

Around one million young people in the UK are not in education, employment or training, and the government has faced calls to reduce employer NI contributions for younger workers to help boost job opportunities.

The Conservatives said the policy is targeted at starter jobs and the standard rate would apply to earnings above £50,270.

The move would cost £2.3bn, according to party estimates, with a plan on how to fund it to be published on Wednesday.

Earlier this week, shadow chancellor Andrew Griffith said he hopes to scrap at least one tax every budget if the Conservatives return to power, with the so-called “mansion tax” in his sights.

He said he would scrap the High Value Council Tax Surcharge (HVCTS), which takes effect from 2028 and introduces an extra levy for owners of properties in England valued at more than £2m.

The Tory leader will argue her party is “a renewed Conservative Party fighting again for the belief that what people earn belongs to them, not government”.

In an interview with BBC political editor Chris Mason on Tuesday, she said “we are going back to the authentic Conservative Party, that people knew and loved”.