Tories commit to £47bn savings package to ‘restore public finances’
The Tories have committed to making £47bn in savings across the welfare state and Whitehall to “ensure the country lives within our means”, in a radical pledge that aims to restore the beleaguered party’s reputation for fiscal responsibility.
In a speech to Tory party members in Manchester on Monday, Shadow Chancellor Mel Stride will claim £47bn in spending cuts will reflect the party’s commitment to fiscal sustainability and making better use of taxpayers’ cash.
He will say that most savings can come through cuts to welfare payments for people with “low level mental health problems” and for immigrants who have settled status in the UK but do not hold British citizenship.
“The Conservative Party will never, ever make fiscal commitments without spelling out exactly how they will be paid for,” he will tell members.
“We’re the only party that gets it. The only party that will stand up for fiscal responsibility. We must get on top of government spending.”
“We cannot deliver stability unless we live within our means. No more pretending we can keep spending money we simply do not have.”
Welfare bill set to be slashed
Nearly half of the savings would be made from cuts to the welfare bill, with the Tories pledging to replace the current system of “one that properly targets help to those who need it most”.
Only British citizens will be able to access welfare, suggesting people who have indefinite leave to remain (ILR), otherwise known as settled status, would have some rights stripped from them.
It draws the Tories closer in line with Reform UK on policies around immigrants’ access to the welfare state. Nigel Farage claimed his proposed changes set out by his party would save £234bn, a figure taken from a Centre for Policy Studies (CPS) report on the immigration system.
But Farage has come under intense scrutiny over his policy to abolish ILR. The CPS said figures on savings were likely to be radically smaller as calculations had been updated since it produced its report.
Farage also suggested changes would not apply to EU citizens with settled status in the UK, which make up a large portion of those on ILR, further reducing the likely savings.
The Tories have also said an exemption would apply to EU citizens if they were re-elected into government.
Tories vow to slash size of civil service
A large portion of savings made by the Conservative Party would also come through slashing headcount at the civil service by around 133,000.
Stride is expected to say the current levels of 517,000 staff is not sustainable and cuts to take it back to 2016 levels would keep the public purse in check.
Tory officials believe that savings across Whitehall will total £8bn. A further £8bn in cuts could be made through “serious cuts” in overseas aid.
Other smaller chunks of savings could come from ending asylum hotels and reducing council housing subsidies.
The Tories have also said they could make sayings from scrapping green subsidies championed by Ed Miliband. This policy is also supported by Reform though Tory leader Kemi Badenoch has not backed a move to tax renewable energy sources. Most subsidies for renewable energy are funded by levies on energy bills paid by firms and households.
Anna Turley, Labour Party chair, said: “The Tories let welfare bills, civil service numbers and asylum hotel use skyrocket on their watch – and they’ve never apologised. Now they want to rehash failed promises from their failed manifesto to try to solve the problems they caused.
“This is the same old Tories, with the same old policies. They didn’t work then and you can’t trust them now.