Kemi Badenoch Unveils ‘Golden Rule’ to Halve Spending Cuts for Deficit Reduction at Tory Conference

Published: 08 October 2025. The English Chronicle Online.

Kemi Badenoch, one of the Conservative Party’s most prominent figures, is set to announce a new “golden rule” of economic policy that aims to restore fiscal discipline and rebuild the Tories’ reputation for responsible financial management. In a pivotal address at the Conservative Party Conference in Manchester, Badenoch will pledge that at least half of all money saved through government spending cuts will be used to reduce the national deficit, while the remaining portion will be directed toward tax cuts and economic growth measures.

The proposal comes at a critical moment for the United Kingdom’s economy. Government borrowing has surged to its highest level in five years, reaching £83.8 billion for the financial year up to August. The sharp rise has placed mounting pressure on Chancellor Rachel Reeves ahead of her upcoming budget announcement scheduled for 26 November. Against this backdrop, Badenoch’s speech will attempt to position the Conservatives once again as the party of sound financial stewardship — a reputation that was badly tarnished under previous leaderships, particularly during the short-lived premiership of Liz Truss.

According to advance excerpts of the speech, Badenoch will declare that the Conservatives are the only party with a “credible plan” to put Britain’s economy back on course. “It starts with fiscal responsibility,” she is expected to say. “We have to get the deficit down. And we must also show how every tax cut or spending increase is paid for.” Her plan includes a clear commitment to ensuring that government savings are not entirely channelled into politically attractive tax cuts but rather used to balance public finances.

The “golden rule” itself is designed to ensure a balance between fiscal prudence and economic stimulus. “Every pound we save will be put to work,” Badenoch will tell delegates. “At least half will go towards cutting the deficit — because living within our means is our first priority. And with the rest, we are going to get our economy growing again. And bring down the taxes stifling our economy.”

Her remarks are expected to draw a stark contrast with Labour’s economic approach. Badenoch will accuse Chancellor Reeves and Prime Minister Keir Starmer’s administration of creating what she calls a “borrowing and tax doom loop,” warning that Labour’s fiscal strategy could double the national deficit over the next decade. “It’s not sustainable and it’s not fair,” she will argue. “It is stealing from our children and grandchildren. And Conservatives will put a stop to it.”

The policy proposal forms part of a wider Conservative economic agenda that Badenoch and her shadow cabinet have been developing in recent months. The party has already outlined plans to slash £47 billion in public spending, targeting areas such as welfare, foreign aid, and the civil service. Simultaneously, the Conservatives have promised to reverse Labour’s recent tax changes, including the imposition of VAT on private school fees and inheritance tax on farms. The Tories also aim to scrap business rates for shops and pubs — a move they argue would rejuvenate struggling high streets and local economies.

However, the centrepiece of Badenoch’s upcoming speech will not be limited to fiscal rules and tax reform. In an effort to reshape Britain’s approach to education and workforce development, she will also unveil plans to cap enrolment on so-called “rip-off” university courses that offer poor value for money and burden graduates with long-term debt. By cutting the number of students attending low-value degree programmes by 100,000 each year, the Conservatives claim they can save £3 billion in unpaid student loans — funds that could instead be reinvested into vocational and technical training.

“I want to double the funding for apprenticeships,” Badenoch is expected to announce. “We need more apprenticeships. I was working with adults. I was paying my own way. And it gave me self-confidence in a way my university degrees never did. And unlike my subsequent university degree, I wasn’t still paying off my debts in my early 30s.”

The remarks highlight Badenoch’s effort to contrast her personal experiences with what she perceives as an overemphasis on traditional university education. She will argue that Britain must reorient its priorities towards practical skills and job creation, particularly in industries vital to future economic growth.

The new education policy is expected to be divisive, with critics likely to accuse the Conservatives of devaluing arts and humanities programmes. Nonetheless, party insiders insist the proposal is about ensuring taxpayer money delivers genuine returns and that graduates are not trapped in what Badenoch terms “debt trap” degrees with limited employment prospects.

Predictably, Labour and the Liberal Democrats have dismissed Badenoch’s announcement as political posturing. A Labour spokesperson issued a scathing response, accusing Badenoch of hypocrisy and failing to acknowledge her own party’s economic mismanagement. “Kemi Badenoch has some brass neck,” the spokesperson said. “It’s astounding that her latest speech still contains no apology for the Conservatives crashing the economy, which left families saddled with sky-high mortgages and rising prices in the supermarket.”

The Labour Party further criticised the Conservatives’ proposed spending cuts as unrealistic, claiming that the figures were “fantasy savings” calculated “on the back of the same fag packet Nigel Farage has been writing on.” The spokesperson added, “The Tories are all over the place. It shows they’ve learned nothing and still can’t be trusted with the public finances.”

The Liberal Democrats, too, poured scorn on Badenoch’s proposals. A spokesperson for the party said, “The idea that the public would trust the Conservatives with the economy again is laughable. After the chaos of recent years, voters know who is responsible for the economic mess we’re in.”

Despite these criticisms, Badenoch’s intervention is likely to be seen as a bid to rebrand both herself and her party as fiscally responsible and forward-looking in the run-up to the next general election. Her emphasis on “living within our means” echoes traditional Conservative rhetoric on debt reduction, while her commitment to apprenticeships and tax reform is designed to appeal to working- and middle-class voters frustrated by rising living costs.

Political analysts note that Badenoch’s emergence as a key economic voice within the Conservative ranks signals an attempt to bridge the gap between the party’s fiscal conservatives and its newer populist wing. Her focus on discipline, growth, and opportunity may form the foundation of a broader leadership pitch in the future, especially as the party seeks to redefine its post-Truss and post-Sunak identity.

Economically, the feasibility of Badenoch’s proposals remains uncertain. Critics point out that any attempt to reduce the deficit through large-scale spending cuts risks undermining public services and stalling economic recovery. Moreover, the volatile global financial environment — shaped by inflation, energy prices, and international conflicts — limits the UK’s ability to rely on austerity-driven strategies without severe social consequences.

Nevertheless, within the Conservative Party, Badenoch’s message of fiscal restraint coupled with targeted investment is being welcomed as a necessary corrective to years of economic turbulence. Her call for a “golden rule” underscores the challenge facing the Tories as they seek to convince voters that they can once again be trusted to manage the economy responsibly.

As the Manchester conference draws to a close, Badenoch’s speech is expected to serve as a defining moment for the Conservative opposition’s emerging platform — one that promises both discipline and growth, but must first overcome deep public scepticism. Whether the electorate will buy into that message after years of political and economic turmoil remains to be seen.