Proposed welfare and foreign aid cuts outlined by Shadow Chancellor Mel Stride could save taxpayers £47 billion, according to new Conservative plans. Stride is set to unveil these initiatives during his speech at the Tory conference in Manchester, reports BritPanorama.
The proposed measures include slashing welfare costs by £23 billion and significantly curtailing foreign aid budgets. Stride’s strategy also aims to minimize regulations surrounding Net Zero initiatives, further indicating a political shift towards economic conservatism within the party.
In Manchester, Stride is expected to assert the Conservative Party’s commitment to fiscal responsibility. “We’re the only party that gets it. The only party that’ll stand up for fiscal responsibility. We must get on top of government spending,” he will say. He insists that delivering stability will require living within means, urging an end to what he terms “pretending we can keep spending money we simply do not have.”
Chancellor Rachel Reeves faces the daunting task of identifying £30 billion to address a financial shortfall as the UK grapples with increasing debt levels. Stride’s plans may spur speculation regarding tax reductions if the Tories regain power.
The welfare reforms include a controversial proposal to discontinue benefits claims for low-level mental health issues, potentially affecting many vulnerable individuals. Additionally, a focus on ensuring welfare support is exclusive to UK citizens is projected to save £4 billion.
The overseas aid budget, which previously faced scrutiny, is also set for cuts, with planned reductions bringing spending down to 0.1% of GDP, realizing a further £7 billion in savings. This follows a commitment by former Prime Minister David Cameron to maintain levels at 0.7%, which has since decreased under Labour to 0.3%.
Stride further emphasizes savings from ineffective Net Zero policies, claiming £1.6 billion will be cut as part of broader fiscal reforms. A pledge to deport illegal migrants is projected to save £3.5 billion by eliminating hotel accommodation costs for these individuals.
Despite these propositions, the Institute of Economic Affairs has raised concerns about the failure to address pension costs. The Office for Budget Responsibility has cautioned that the pensions triple lock could become “unsustainable” in the long run.
In response to Stride’s announcements, Labour chair Anna Turley argued that the Conservatives aim to resurrect failed policies to remedy issues of their own making, criticizing the party’s fiscal strategy as regressive.
