At the Conservative Party Conference in Manchester, the party plans to introduce a “first-job bonus,” which would provide young individuals with a £5,000 tax rebate to assist with their first home purchase upon securing full-time employment. Shadow Chancellor Mel Stride is set to reveal these proposals during his speech, aimed at redirecting national insurance contributions into long-term savings accounts. The proposed initiative is expected to be funded through a £47 billion reduction in public spending over five years, affecting areas such as welfare, civil service, and foreign aid.
Among the specific measures proposed are limits on welfare claims for those with “low-level mental health problems,” and a reduction of approximately 132,000 civil servant positions—about a quarter of the workforce. The plan also includes reducing the overseas aid budget by £7 billion to 0.1% of national income. This conference marks the nearly one-year anniversary of Kemi Badenoch’s leadership as the party continues to face challenges from political rivals and has experienced significant electoral losses in recent local elections.
Strides’ speech will emphasize the importance of fiscal responsibility, asserting that stability cannot be maintained without living within financial means. To achieve the proposed savings, the party suggests various cuts, including £23 billion from welfare, £8 billion from civil servant reductions, and £4 billion by restricting benefits and social housing to UK nationals. The Labour government’s recent reforms in the housing market aim to reduce costs and streamline processes for families and first-time buyers, contrasting with the Conservatives’ focus on spending cuts.
Earlier this year, the Labour administration faced backlash for attempting to reduce disability and health-related benefits, leading to reconsiderations of welfare system modifications. Discussions surrounding potential changes to the two-child benefit cap continue as pressure mounts from within the Labour Party. The Conservative Party’s conference precedes Labour Chancellor Rachel Reeves’ upcoming Budget announcement, with ongoing speculation regarding the necessity of tax increases to adhere to public spending and debt regulations.
Source: https://www.bbc.com/news/articles/c4gzv9j78dyo?at_medium=RSS&at_campaign=rss