Kemi Badenoch paves the way for £25billion in tax cuts with new ‘Golden Rule’ for the economy
Kemi Badenoch is planning tax cuts of up to £25bn, putting the economy at the center of her bid to reinvigorate the Conservative Party.
The Conservative leader will vow to ‘cut the taxes that are strangling our economy’ and reverse Labour’s ‘cycle of debt and tax disaster’.
He will unveil plans for a new ‘golden rule’ that would require half of every pound saved to be used to cut the deficit, with the other half spent on tax cuts and stimulating the economy.
The Conservatives’ annual conference in Manchester focused heavily on new policies to curb illegal immigration, including promises to abandon the European Convention on Human Rights (ECHR) and deport 750,000 people who have no right to live in this country.
The moves are designed to show voters that the Conservative Party is willing to comply with Nigel Farage’s tough stance on immigration, which has seen reform soar in the polls.
But Tory strategists believe the party’s best hope for recovery lies in trying to rebuild its battered economic reputation.
In her opening speech at the Conservative Party conference in Manchester, Ms Badenoch said the Conservative approach ‘starts with fiscal responsibility’, adding: ‘We must bring the deficit down.’
‘Over the next decade, Rachel Reeves will double the deficit through a cycle of debt and tax disaster,’ he will say.
‘This is not sustainable and it’s not fair. He steals from our children and grandchildren. And the Conservatives will put an end to it.’
Kemi Badenoch will outline a new ‘Golden Rule’ on the economy as she looks to revive the Conservative Party’s fortunes at the Conservative Party conference in Manchester
Shadow chancellor Sir Mel Stride this week announced plans to cut government spending by £47bn by slashing welfare, cutting the size of the civil service by a quarter and cutting billions of dollars from foreign aid.
Ms Badenoch will today pledge to use at least half of the money saved to cut the deficit, with the rest spent on tax cuts or stimulating the economy.
Promising a new ‘golden economic rule’, he will say: ‘Every pound we save will help. At least half of it will go to covering the deficit. Because living within our means is our first priority.
‘We will grow our economy again, along with the rest. And reduce the taxes that are choking our economy.’
The Conservatives this week plan to cut business rates for 250,000 pubs and high street shops at a cost of £4bn. A further £2.8 billion has been allocated to fund a new ‘first job bonus’ that will offer young people entering the workplace up to £5,000 on their first home.
But even if £24bn were used to plug the UK’s budget deficit, this would still leave £16bn of room for potential tax cuts.
The Conservative Party leader will also pledge to cut funding for ‘low quality’ degree courses and use their revenues to double the number of apprenticeships.
Ms Badenoch will warn that too many classes can lead students into a ‘debt trap’ where they will never earn enough to pay back their tuition fees.
He will cite an analysis that suggests almost a third of graduates now have ‘no economic return’ from their years of study, adding: ‘Every year thousands of young people go to university, only to leave with crippling loans and no real prospects.
‘We will close these robbery courses and use the money to double the apprenticeship budget. Giving thousands more young people the chance to get a decent start in life.’
Conservative sources have highlighted figures showing many graduates in fields such as performing arts and media studies earn below the national average wage.
Under the Conservative Party’s plans, funding will be capped for courses whose graduates continue to receive low wages. The savings will be used to increase the number of apprenticeship places on offer.
In England, student size restrictions were completely removed in 2015, leading to a record number of students being accepted onto university courses that year.
By reintroducing caps and gradually lowering them, the Conservatives hope to limit loan repayment losses by reducing the number of people going to university.
The party said the policy would enable 100,000 people a year to go to university by the end of the next parliament, saving £3 billion, enough to double the apprenticeship budget.
