Labour will not have the courage to cut spending, says Badenoch
Speaking ahead of next week's Budget, the Conservative leader says her party would make £70bn of cuts.
Labour will not have the courage to cut spending, says Badenoch
Kemi Badenoch has said Labour will not have the "courage" to make the public spending cuts she said were needed to reduce debt and pay for defence.
Speaking in central London, the Conservative leader said the chancellor was aiming to present a "nothing to see here Budget" next week, but added: "Britain cannot afford to do as little as possible."
Pointing to her own plan to cut 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 called Badenoch's answer "reverse Robin Hood politics – giving tax breaks to the wealthiest while offering nothing to ordinary people".
Chancellor John Healey is due to unveil his tax and spending plans on 28 October - the first Budget since Andy Burnham became prime minister.
Healey has faced pressure to explain how he will increase defence funding to 3% of national income by 2030. But that announcement is not expected until the government's spending review next year.
The Budget is also unlikely to set out any changes to the welfare system, with those expected after former cabinet minister Alan Milburn completes 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 said the International Monetary Fund (IMF) had recently praised the UK for its plans to cut borrowing.
"The IMF clearly don't know this Labour Party like I do," she said.
She said Labour's plans would require "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."
Latest figures show that in August government borrowing was £18.3bn. The government is paying £8.8bn on its debt - the highest level since records began in 1997.
Badenoch said her party would cut borrowing by finding £70bn of savings, including through reductions to the welfare bill.
Under her party's "golden economic rule", half of the savings would be used to reduce 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 said they would abolish inheritance tax on family homes and let couples pass on £1m tax-free.
The party has also promised to scrap a rule that means parents in England earning more than £100,000 a year lose childcare support.
Asked whether the Conservatives were the party for the rich, Badenoch told the BBC her policies would "help everyone".
"Quite frankly, getting people off welfare is doing something for them... the best welfare is a well-paying job," she said.
Pressed on whether she would change the triple lock to reduce pension spending, Badenoch said she did not want to see "pensioner poverty" and that there were other things the party could do to grow the economy.
Trade unions and the Liberal Democrats have urged the government to raise money by imposing a windfall tax on banks, which have posted large profits in recent years.
Badenoch rejected that idea, saying it would affect bank shareholders, including people's pension funds.
Setting out her party's policy, Liberal Democrat leader Daisy Cooper said: "It's outrageous that while households have been grappling with the cost-of-living crisis, the big banks have benefited from a taxpayer-funded windfall worth billions."
She said the money raised from higher taxes on banks could be used to cut the cost of petrol and diesel and transport fares.
Responding to Badenoch's speech, Phillipson said: "Under the Tories debt rocketed, interest rates went up, while family finances and businesses were hammered.
"Labour has taken the fair decisions to reverse the Conservatives' decline. The economy is growing, interest rates have fallen, and private investment has returned.
"We're giving people breathing space on the cost of living and delivering everyday fixes to make life that little bit easier."