Key facts
- Badenoch claims Labour's deficit reduction plans rely on 'huge cuts' to the public sector.
- Badenoch stated UK borrowing costs are nearly two percent higher than Germany's.
- Debt interest is projected to rise above £130 billion by 2030, according to Badenoch.
Kemi Badenoch, the Conservative leader, is set to criticize Chancellor John Healey's budget plans, warning they rely on "fictional cuts" that will not convince investors. In a speech in London, Badenoch will argue that Healey's proposals could inflict more damage than previous budgets from Rachel Reeves.
She will urge Healey and Labour leader Andy Burnham to reduce spending and adhere to fiscal discipline. Badenoch also outlined Conservative plans for approximately £70 billion in cuts, primarily targeting welfare, civil service numbers, and foreign aid.
Badenoch highlighted that the 30-year gilt yield has surpassed 6%, a level not seen since 1998, and stated that UK borrowing costs are nearly two percent higher than Germany's. She projected that debt interest payments will rise from about £110 billion this year to over £130 billion by 2030. Additionally, she cited an estimate suggesting higher inflation could create a £35 billion budget deficit.