Kemi Badenoch is signalling the return of the low-tax Tories today as she tries to rally her struggling party.
Mrs Badenoch is closing the conference in Manchester with a speech arguing that the Conservatives are not finished.
She told activists that they were the only party that can save Britain from its ‘darkest days’ of ‘decline’, by stabilising the economy and overhauling the ‘broken model’.
She said the challenge was to ‘secure our borders and restore our strength so our children inherit a country that works’.
Mrs Badenoch will contrast her tough approach on spending and benefits with Reform’s platform. Tories believe that Nigel Farage‘s efforts to move into Labour territory have opened ground for them.
She told the hall that she was proud to be leading ‘the only party that can meet the test of our generation’.
Mrs Badenoch is pledging to ‘bring down the taxes stifling our economy’ and reverse Labour‘s ‘borrowing and tax doom loop’.
She will unveil plans for a new ‘golden rule’ which will require half of every pound saved to be used for cutting the deficit, with the other half spent on tax cuts and boosting the economy.
However, many at the gathering in Manchester fear that Mrs Badenoch might not be in charge when they meet again, with Conservatives braced for a hammering in local elections in May.
Mrs Badenoch was preceded on the stage by the national anthem being played – after a backlash that it was not going to be used at the end of the conference.
Kemi Badenoch is closing the conference in Manchester with a speech arguing that the country still needs the Conservatives
Activists queue for Mrs Badenoch’s conference speech in Manchester today
The Tories have been sounding tough noises on illegal immigration, including committing to quit the European Convention on Human Rights (ECHR) and deport 750,000 people with no right to be in this country.
However, Tory strategists believe the party’s best hope lies in restoring its battered economic credentials.
In her keynote speech, Mrs Badenoch will say the Conservative approach ‘starts with fiscal responsibility’, adding: ‘We have to get the deficit down.’
‘Over the next decade, Rachel Reeves is going to double the deficit with her borrowing and tax doom loop,’ she will say.
‘It’s not sustainable and it’s not fair. It is stealing from our children and grandchildren. And Conservatives will put a stop to it.’
Shadow chancellor Mel Stride announced plans this week to slash government spending by £47 billion by clamping down on welfare, reducing the size of the civil service by a quarter and cutting billions from foreign aid.
According to Mrs Badenoch, at least half the money saved will be used to reduce the deficit, with the rest spent on cutting tax or boosting the economy.
Pledging a new ‘golden economic rule’, she will say: ‘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.’
The Conservatives have set out plans this week to scrap business rates for 250,000 pubs and high street shops at a cost of £4billion.
A further £2.8 billion has been allocated to fund a new ‘first job bonus’ which would offer young people entering the workplace up to £5,000 towards their first home.
But, even with £24billion used to cut the UK’s deficit, this would still leave up to £16billion available for potential further tax cuts.
The Tory leader will also pledge to curb funding for ‘low quality’ degree courses and use the proceeds to double the number of apprenticeships.
Mrs Badenoch will warn that too many courses are drawing students into a ‘debt trap’ in which they will never earn enough to pay back their tuition fees.
She will cite analysis suggesting that almost a third of graduates now see ‘no economic return’ on their years of study, adding: ‘Every year thousands of young people go off to university, but leave with crippling loans and no real prospects.
‘We will shut down these rip-off courses and use the money to double the apprenticeship budget. Giving thousands more young people the chance of a proper start in life.’
Tories believe that Nigel Farage’s efforts to move into Labour territory have opened ground for them
Tory sources highlighted figures showing that many graduates in areas like the performing arts, media studies earn below the national average wage.
Under Tory plans, funding for courses whose graduates go on to earn low wages would be capped. The savings would be used to increase the number of apprenticeship places on offer.
Student number caps were fully lifted in England in 2015, leading to a record number of students being accepted onto university courses that year.
By reintroducing and gradually lowering the caps, the Conservatives hope to limit loan repayment losses through a reduction in the number of people going to university.
The party said the policy would see 100,000 fewer people per year going to university by the end of the next parliament, saving £3 billion – enough to fund a doubling of the apprenticeship budget.
