Kemi Badenoch has unveiled an ambitious economic agenda at the Conservative conference in Manchester, proposing up to £25 billion in tax cuts as a cornerstone of the party's revival strategy. Her plan is squarely focused on bolstering the economy, reversing what she describes as Labour's 'borrowing and tax doom loop,' and restoring the Conservatives' reputation for fiscal responsibility. The announcement marks a strategic shift, with the party now prioritizing economic credentials as its best hope for recovery.

A central pillar of Badenoch's economic strategy is a new 'golden rule' for public finances. This rule dictates that at least half of every pound saved through government spending cuts must be allocated to reducing the national deficit, while the remaining half will be used for further tax cuts and measures aimed at boosting the economy. This approach, she emphasized, is rooted in the principle of 'living within our means' and is a direct challenge to what she projects as Rachel Reeves's plan to double the deficit over the next decade. Badenoch asserts that this unsustainable path 'is stealing from our children and grandchildren,' and Conservatives intend to put a stop to it.

The comprehensive economic plan includes significant spending reductions and tax proposals. The Conservatives have outlined intentions to slash government spending by £47 billion, targeting areas such as welfare, reducing the size of the civil service, and cutting billions from foreign aid. These savings are crucial to enable the 'golden rule' and fund proposed tax cuts. Specific tax relief measures include scrapping business rates for 250,000 pubs and high street shops, a move estimated to cost £4 billion. Additionally, a new 'first job bonus' of up to £5,000 would be offered to young people entering the workplace to assist with their first home, costing £2.8 billion. Even after dedicating funds to deficit reduction, the plan suggests up to £16 billion could still be available for further tax cuts. These proposals arrive in a context where UK government borrowing reached a five-year high in August, jumping to £83.8 billion for the financial year.

Beyond fiscal policy, Badenoch also revealed plans for significant reforms in higher education. The party aims to curb funding for what it identifies as 'low quality' or 'rip-off' degree courses, particularly those deemed 'debt traps' where graduates struggle to achieve an adequate economic return on their investment. Analysis cited by the party suggests that almost a third of graduates currently see 'no economic return' on their years of study. The proposal involves shutting down these problematic courses and using the generated savings to double the national apprenticeship budget. By reintroducing and gradually lowering student number caps, the Conservatives aim to see 100,000 fewer people per year attending university by the end of the next parliament, which is projected to save £3 billion. This saving is earmarked directly to fund the expansion of apprenticeships, providing more young people with practical skills and avoiding the accumulation of substantial student debt.

The unveiling of these policies at the Conservative conference represents a strategic pivot, as the party previously focused heavily on new measures to curb illegal immigration, including pledges related to the European Convention on Human Rights (ECHR). While immigration remains a concern, Tory strategists believe that re-establishing the party's economic credibility is paramount for recovery, especially after recent challenges to its reputation. However, the proposals have faced immediate criticism from opposition parties. Labour and the Liberal Democrats have dismissed the projected savings as 'fantasy' and questioned the Conservatives' trustworthiness with public finances, with one Labour spokesperson stating that the plans show the Tories 'still can’t be trusted with the public finances.'