Kemi Badenoch has said Labour will not have the "courage" to make the public spending cuts she argued were necessary to bring down debt and fund defence. Speaking in central London, the Conservative leader said the chancellor was hoping to deliver a "nothing to see here Budget" next week but added: "Britain cannot afford to do as little as possible." Highlighting her own plans to reduce spending by £70bn, Badenoch said: "Cuts are never easy but they are much easier to accept if what you are doing is fair." Labour Party chairwoman Bridget Phillipson described Badenoch's solution as "reverse Robin Hood politics – giving tax breaks to the wealthiest while offering nothing to ordinary people". Chancellor John Healey is due to set out his tax and spending plans on 28 October - the first Budget since Andy Burnham became prime minister.
Healey has come under pressure to set out how he will boost defence funding to 3% of national income by 2030. However, this announcement is not expected until the government's spending review next year. The Budget is also unlikely to include details about any changes to the welfare system, with those expected once former cabinet minister Alan Milburn produces his review into young people and work.
Badenoch said: "If Labour's plan is to kick tough decisions into the long grass, come out with tiny bits of micro-policy, put up a few taxes, spend a bit more on welfare, and hope nobody notices before the next election, they are kidding themselves." The Tory leader noted that the International Monetary Fund (IMF) had recently praised the UK for its plans to reduce its borrowing. "The IMF clearly don't know this Labour Party like I do," she said. She said Labour's plans required "huge cuts to the public sector" in 2029 and that the party would call an election before then.
"They are not suddenly going to find the courage to cut spending in the final year of a Parliament right before an election... Investors aren't buying these fictional cuts either." Unexpected UK borrowing surge adds to pre-Budget pressure on chancellor Banks expect to be hit with higher taxes in Budget What is the Budget and what could be in it? The most recent figures show that in August government borrowing stood at £18.3bn.
The government is paying £8.8bn on its debt - the highest level since records began in 1997. Badenoch said her party would reduce borrowing by finding £70bn of savings, including through cuts to the welfare bill. Under her party's "golden economic rule", half of the savings would go towards reducing the deficit.
"Cuts are never easy, but they are much easier to accept if what you are doing is fair," she said. "Fair to taxpayers, fair to future generations, and fair to those who really do need support." The Conservatives have recently announced they would scrap inheritance tax on family homes and allow couples to leave £1m tax-free. The party has also pledged to scrap a rule that sees parents in England earning more than £100,000 a year lose out on childcare support.
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