Badenoch to set out new rule to cut borrowing and taxes

"The party says the rule would ensure half of all savings made by a future Conservative government would be put towards reducing the deficit, which is the gap between spending and tax revenues. The other half of every pound saved would be used for policies aimed at growing the economy, including tax cuts. Badenoch will say the Conservatives are the only party "with a plan to get our economy back on track"."

""It starts with fiscal responsibility," Badenoch will say. "We have to get the deficit down and we must also show how every tax cut or spending increase is paid for." She will accuse the Labour government of risking the UK's financial stability with a "borrowing and tax doom loop". Badenoch will say Labour's economic plans are "not sustainable" and equate government borrowing to "stealing from our children and grandchildren"."

The Conservatives will commit to a new fiscal 'golden rule' requiring that half of all savings under a future Conservative government go to deficit reduction and half to growth policies, including tax cuts. The party plans to save £47bn annually through cuts to welfare, the civil service and foreign aid, while committing £9bn to measures such as a £5,000 tax rebate for young people and abolition of business rates for High Street shops. The leadership emphasizes fiscal responsibility, promises to show how tax cuts are funded, criticizes Labour's borrowing, and seeks to restore Conservative economic credibility after past policy missteps.

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