Kemi Badenoch will announce a new “golden rule” at the Conservative party conference, pledging that at least half of all savings from spending cuts will be used to reduce the deficit, with the remainder earmarked for tax cuts and growth measures. The Conservative leader aims to restore the party’s economic credibility after its reputation was damaged under predecessors such as Liz Truss.
In her speech on Wednesday, Badenoch will say: “Every pound we save will be put to work. At least half will go towards cutting the deficit – because living within our means is our first priority. And with the rest, we are going to get our economy growing again. And bring down the taxes stifling our economy.” The move comes as UK government borrowing reached a five-year high of £83.8bn for the financial year in August.
Badenoch and her shadow cabinet have already proposed £47bn in cuts to welfare, aid and the civil service, alongside tax reductions such as reversing Labour’s VAT on private schools, scrapping inheritance tax on farms, and abolishing business rates for shops and pubs. She will argue that Labour’s policies risk “doubling the deficit” over the next decade, calling it “stealing from our children and grandchildren”.
Additionally, Badenoch will pledge to cap student numbers on university courses deemed poor value, such as certain arts degrees, saving an estimated £3bn in unpaid student loans annually. The funds would be redirected to double spending on vocational apprenticeships. “I was paying my own way. And it gave me self-confidence in a way my university degrees never did,” she will say.
A Labour spokesperson responded: “Kemi Badenoch has some brass neck. It’s astounding that her latest speech still contains no apology for the Conservatives crashing the economy.” The Liberal Democrats called the idea that the public would trust the Tories with the economy “laughable”.
