Conservative leader Kemi Badenoch has outlined a new golden economic rule aimed at tackling Britain’s £50bn financial black hole through sweeping spending cuts and targeted investment in growth.
Speaking on the final day of the Tory conference in Manchester, Badenoch said a future Conservative government would implement £47bn in spending cuts, pledging that every pound saved will be put to work, with half going toward deficit reduction and the rest funding tax cuts and economic growth.
“It starts with fiscal responsibility,we must get the deficit down. Living within our means is our first priority and with the rest, we’re going to get our economy growing again.”
Badenoch criticised Labour’s economic approach under Chancellor Rachel Reeves, accusing her of creating a borrowing and tax doom loop that would steal from our children and grandchildren.
The prime minister is expected to face difficult fiscal decisions in next month’s Budget, with projections suggesting she could fall short of borrowing targets.
The UK’s public debt currently stands at about £2.7 trillion equivalent to nearly 100% of GDP with annual interest payments exceeding £100bn.
Alongside her fiscal proposals, Badenoch announced plans to cap rip-off university courses, which she said offer poor value to students and taxpayers.
The policy aims to reduce university admissions by 100,000 annually, saving £3bn in unpaid student loans and redirecting the funds to double apprenticeship funding.
“This is personal for me,” Badenoch said, recalling her own apprenticeship experience, “We will shut down these wasteful courses and use the money to give thousands more young people the proper start in life they deserve.”
The Conservative leader said the proposals mark a return to sound economic management as her party seeks to rebuild credibility following years of turbulence.
