Politics · United Kingdom · 4 hrs ago
Badenoch urges spending cuts ahead of Healey’s Budget
Conservative leader Kemi Badenoch plans to urge the UK government to cut spending and borrowing in a speech before the Budget.
She will argue that the government should “live within our means” and says its plans to reduce the deficit rely on cuts that may not happen.
The Budget is due on October 28, and Chancellor John Healey has described it as a tough package.
The government must balance support for households and defence spending with its tax promises and rules on borrowing and debt.
UK borrowing costs have risen, and Badenoch says this makes public borrowing more expensive; she points to government bond yields reaching 6%, their highest level since 1998.
The Conservatives say they would make £70 billion in cuts, mainly to welfare, civil service numbers and foreign aid.
The Budget will set out the government’s next choices, but the available information does not say which measures Healey will announce.
Kemi Badenoch will urge the Government to cut spending and borrowing ahead of Chancellor John Healey’s Budget.
She is expected to argue that Labour’s plans rely on cuts that will not happen, and that lower spending is needed to reduce borrowing.
Badenoch will point to UK government borrowing costs, with gilt yields at 6%, their highest level since 1998.
She will promote Conservative plans for £70 billion in cuts, including reductions to welfare spending, civil service numbers and foreign aid.
Healey’s Budget is due on October 28, as the Government weighs support for households against spending commitments and fiscal rules.
- Who
- Conservative leader Kemi Badenoch and Chancellor John Healey. Badenoch will urge the Government to cut spending.
- What
- Badenoch will call for lower government spending and borrowing ahead of the Budget.
- When
- Badenoch’s speech is due ahead of the Budget on October 28.
- Where
- Badenoch is due to give her speech in central London.
- Why
- She argues that lower spending is needed to reduce borrowing and that Labour’s planned cuts are not credible.
Kemi Badenoch and the Conservatives
The Labour Government
Spending
Kemi Badenoch and the Conservatives
Badenoch says the Government should reduce spending to bring borrowing down.
The Labour Government
The Government is balancing household support and defence commitments with its fiscal rules.
Planned deficit reduction
Kemi Badenoch and the Conservatives
Badenoch says Labour’s plans depend on “fictional cuts” that will not happen.
The Labour Government
The Government says it has secured £500 billion of private investment and that the Conservatives lack economic credibility.
Borrowing
Kemi Badenoch and the Conservatives
Badenoch says the Government must stop borrowing so much.
The Labour Government
The Government’s stated fiscal rules aim to end borrowing for day-to-day public spending and reduce debt as a share of national income by the end of the Parliament.
The BBC published an account of the issues expected to shape Healey’s Budget.
Badenoch was due to deliver a speech in central London urging spending cuts.
Healey’s Budget is scheduled to take place.
- Gilt yields
- 6%, their highest level since 1998
- Conservative cuts plan
- £70 billion
- Budget date
- October 28
- Budget headroom estimate
- £23.6 billion in March, according to the OBR
- Labour fiscal rules
- End borrowing for day-to-day public spending and get debt falling as a share of national income by the end of the Parliament
3 sources
What people are saying
We have to stop borrowing so much.
Fictional cuts are not going to cut it. Investors simply aren’t buying it.
They clearly don’t know the Labour Party like we do
The Conservatives have zero credibility on the economy.