On October 8, 2025, Kemi Badenoch, the Conservative Party leader, took to the stage at her party’s annual conference in Manchester with a message aimed squarely at Britain’s economic anxieties. Amid a backdrop of internal party strife, high-profile defections, and lackluster attendance, Badenoch unveiled what she called a "golden economic rule"—a sweeping pledge to restore fiscal discipline, cut taxes, and overhaul the education system, all while drawing sharp contrasts with Labour’s economic approach.
Badenoch’s keynote speech, her first as party leader, was designed to rally the Tory faithful and reposition the Conservatives as the only party, in her words, "who can be trusted to meet the test of our generation." According to Sky News, she promised that if the Tories win the next election, her government would ensure that for every pound saved, at least half would go to reducing the deficit, while the remainder would be funneled into tax cuts or spending to boost economic growth.
"Every pound we save will be put to work. At least half will go towards cutting the deficit. Because living within our means is our first priority. With the rest, we are going to get our economy growing again. And bring down the taxes stifling our economy," Badenoch declared, as reported by the Daily Mail.
In a pointed attack on Labour, Badenoch accused Shadow Chancellor Rachel Reeves of pursuing a "borrowing and tax doom loop" that she claims will double the national deficit over the next decade. "It’s not sustainable, and it’s not fair," Badenoch said. "It is stealing from our children and grandchildren, and Conservatives will put a stop to it." The phrase became a recurring motif throughout her address, underscoring her argument that fiscal irresponsibility today burdens future generations.
To back up these promises, the Conservative leader outlined a £47 billion savings plan. Details provided by The Telegraph and Sky News indicate that the Tories intend to extract £23 billion from welfare reforms, £8 billion by reducing the civil service by a quarter, and £7 billion from slashing the overseas aid budget. These measures, Badenoch argued, would not only help shrink the deficit but also create fiscal space for up to £25 billion in tax cuts—a move she believes is vital to reviving the party’s economic credentials.
But the speech was not just about numbers. Badenoch’s vision extends to a major shake-up in higher education. She announced plans to cap funding for what she described as "debt trap" or "duff degrees"—university courses that leave graduates with high debts and poor job prospects. According to The Sun, taxpayers currently absorb £7 billion a year in student debt write-offs. "Wasted money, wasted talent. A rigged system propping up low-quality courses, while people can’t get high-quality apprenticeships that lead to real jobs," she said. Badenoch pledged to shut down these "rip-off courses" and use the savings to double the apprenticeship budget, giving "thousands more young people the chance of a proper start in life."
Analysis cited by the Daily Mail suggests that almost a third of graduates see "no economic return" on their years of study. Under the new Conservative proposal, funding for courses whose graduates go on to earn below the national average wage would be capped, and student number caps—lifted in England in 2015—would be gradually reintroduced. The party estimates this would reduce university admissions by 100,000 annually by the end of the next parliament, saving £3 billion, which would then fund the doubling of apprenticeship places.
Badenoch also announced targeted tax and spending policies designed to appeal to both businesses and young people. The Tories plan to scrap business rates for 250,000 pubs and high street shops at a cost of £4 billion, and to introduce a £2.8 billion "first job bonus" scheme, offering young people entering the workforce up to £5,000 towards their first home. These measures, party strategists hope, will not only stimulate growth but also help the Conservatives claw back support from younger voters and small business owners.
However, the conference itself was marked by a sense of unease. Attendance was notably lower than in previous years, and the event was overshadowed by the defection of 20 Tory councillors to Reform UK—a party led by Nigel Farage that has been gaining ground in the polls with its hardline stance on immigration and criticism of both main parties. According to The Telegraph, Reform UK secured 677 seats at the May local elections and took control of several councils previously held by the Conservatives. Farage didn’t mince words, declaring, "The Conservative Party is dead and can no longer serve as an effective opposition. It is no wonder that councillors who actually want to fix this country are finding their natural home with Reform."
Badenoch, for her part, tried to brush off the defections, telling Sky News that the party was "shedding a lot of baggage" and that "on very long, difficult journeys, you will lose some people on the way." Shadow Home Secretary Chris Philp echoed this sentiment, dismissing the threat from Reform as overblown.
Yet, internal dissent was hard to ignore. A Sky News/YouGov poll released during the conference found that half of Conservative members did not want Badenoch to lead the party into the next election, with Shadow Justice Secretary Robert Jenrick emerging as a favorite alternative. Despite the leadership jitters, Badenoch insisted the party was having "a very good conference" and that members had been "thrilled" with the new policies.
Labour, meanwhile, responded with scathing criticism. A party spokesman told The Telegraph, "Kemi Badenoch has some brass neck. 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." Labour maintained that its own policies had "fixed the foundations of our economy," citing five interest rate cuts and renewed growth as evidence that "money is going back in people’s pockets." They dismissed the Conservatives’ "fantasy public spending ‘savings’" as unworkable and "done on the back of the same fag packet Nigel Farage has been writing on."
As the dust settles on the Manchester conference, the Conservative Party faces a daunting road ahead. With polls showing Badenoch trailing both Nigel Farage and Sir Keir Starmer, and with internal divisions laid bare, the success of her "golden rule" and economic revival plan may well determine not just the party’s electoral fortunes, but the future direction of Britain’s economy itself.
