Summary
The Conservative Party, led by Kemi Badenoch, plans to introduce a new economic rule to reduce government borrowing and taxes. Half of the savings from planned cuts would go toward reducing the deficit, and the other half would support policies like tax cuts to grow the economy. This announcement aims to strengthen the party's economic credibility, especially in comparison to the Labour government's financial strategies.
Key Facts
- Kemi Badenoch is the leader of the Conservative Party.
- The Conservatives propose a new "golden rule" to cut government borrowing and taxes.
- Savings from cuts would be divided equally between reducing the deficit and supporting economic growth policies.
- Badenoch criticizes the Labour government for risking financial stability.
- The Conservatives pledge to save £47 billion a year from cuts and commit £9 billion to new policies.
- Badenoch seeks to distance her economic approach from former Prime Minister Liz Truss.
- The Office for Budget Responsibility forecasts a decrease in public sector net borrowing by 2029-30.
- The Conservatives question the Labour government's plans to reduce the deficit and their reliance on financial forecasts.
