Kemi Badenoch will today set out a new ‘golden rule’ for managing the public finances and unveil what aides describe as a ‘totemic’ tax cut as she seeks to refocus the Conservative Party’s message on economic growth and fiscal discipline.
The Conservative leader is due to close the party’s annual conference in Manchester on Wednesday, outlining her plan to restore confidence in the Government’s handling of the economy. The new fiscal rule will require that half of all savings from spending cuts are used to reduce the deficit, with the remaining half directed towards lower taxes or targeted investment.
The announcement marks a clear pivot back to the economy after a turbulent conference dominated by internal debate on immigration, human rights and law and order.
Senior party figures said Badenoch’s fiscal framework was designed to provide “clarity and discipline” after months of economic instability and would serve as the foundation of her growth strategy heading into next year’s general election.
Aides said the forthcoming tax cut — details of which are expected to be confirmed during the speech — would symbolise the party’s commitment to rewarding work and enterprise while maintaining responsible public spending.
One senior Conservative source described the measure as “totemic”, adding: “It’s designed to show that the party still stands for aspiration, responsibility and sound money.”
The shift in focus comes amid concerns that the Conservatives’ poll ratings remain stubbornly low and that Nigel Farage’s Reform Party is gaining momentum among disillusioned right-leaning voters.
Party strategists believe Badenoch will be given time to stabilise the Conservatives’ standing and define her leadership before the campaign season begins in earnest.
While her conference speech will emphasise fiscal prudence and growth, it is also expected to touch on reform of Whitehall spending, productivity, and regional investment.
Meanwhile, Sir Keir Starmer has accused senior Conservatives of being distracted by leadership manoeuvring following remarks by Robert Jenrick, the shadow justice secretary, who claimed he “didn’t see another white face” during a visit to Birmingham earlier this year.
Starmer said Jenrick appeared to be “clearly just engaging in a leadership campaign”, seizing on internal divisions as Badenoch attempts to reassert control over the party narrative.
The Tory leader’s team insists that her focus remains firmly on economic renewal, positioning the Conservatives as the “party of enterprise” and contrasting their approach with Labour’s tax and spending plans.
Read more:
Kemi Badenoch to unveil ‘golden rule’ and totemic tax cut in Conservative conference speech