Badenoch urges fiscal cuts and reduced borrowing ahead of Healey's budget
Kemi Badenoch warned that the UK must slash spending and curb borrowing before the upcoming budget.
In a central London address, Kemi Badenoch criticised the government's fiscal approach, claiming Labour's budget depends on unrealistic cuts in the final year and that investors remain unconvinced. She highlighted that UK gilt yields have risen to 6%, the highest level since 1998, meaning each borrowed pound now carries a much higher cost. Badenoch argued that the proper response is to lower spending, pointing to Conservative plans for £70 billion in cuts focused on welfare, civil service staffing and foreign aid.
She also noted that the UK is paying higher borrowing costs than other G7 nations, including Greece, Spain and Germany. Her remarks come ahead of Jeremy Healey’s budget on October 28, which the Conservatives intend to present as a tough package.
Why it matters
The speech signals a sharp partisan clash over how to manage the UK's debt and public spending before a key budget.
How this story developed
- Sep 29 Andy Burnham signals possible UK return to the EU after condemning Brexit
- Sep 30 The Prime Minister now says re‑joining the EU is among the options the government will consider.
- Sep 30 Burnham signaled that full EU membership is among the possible routes Labour could evaluate.
- Oct 3 A new poll shows half of British adults now support rejoining the EU.
- Oct 4 Kemi Badenoch opened the Conservative conference by framing the Tories as a common-sense party, unveiling pledges on tighter welfare, prison expansion and free childcare for high-earning families.
- Oct 5 Badenoch pushed to drop the £100,000 childcare tax cap at the conference.
- Oct 6 Announced a cut to employer National Insurance for 21‑ to 24‑year‑olds from 15% to 7.5%.
- Oct 7 Badenoch announced a defence spending target of 3% of GDP.
- Oct 8 Badenoch denounced Reform UK as ethnically exclusive at the conference.
- Oct 8 Burnham announced that the pension triple‑lock will be scrapped after the next general election and its savings will fund a National Care Service.
- Oct 13 YouGov’s latest survey indicates that Reform has reclaimed the third-most-favoured position, surpassing the Conservative Party for the first time since early 2024, though the margin is within the poll’s error range. The poll suggests the Conservatives may have benefited from recent conference coverage, while Labour’s support appears to be fading. In the Commons, MP Burnham affirmed the legitimacy of recent election results but highlighted concerns over foreign actors seeking to influence UK democracy.
- Oct 14 Dean Miller, a Reform UK councillor in Bromley, quit after secret recordings captured him making racist comments and claiming King Charles is Muslim.
- Oct 18 Ipsos poll shows Conservatives have moved ahead of Reform UK in the opposition race.
- Oct 19 The party has suspended activist Jason Powell and opened investigations into several councillors.
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