Conservative leader Kemi Badenoch is calling for government spending cuts to address rising borrowing costs ahead of the upcoming October 28 Budget.

Conservative leader Kemi Badenoch is set to urge the government to "live within our means" by implementing spending cuts. In a speech in central London, she will warn against excessive borrowing, citing that UK gilt yields have reached 6%, their highest level since 1998. Badenoch argues that the government's current deficit reduction plans rely on unrealistic future cuts.

Criticism of Government Borrowing

Badenoch contends that the UK is paying more to borrow than other G7 nations, noting that rates are higher than those in Greece, Spain, and Germany. She claims the government is taking out new loans to pay interest on existing debt, a strategy she compares to a family or business "sinking" under financial pressure. She also questioned the International Monetary Fund's positive assessment of the government's deficit reduction, labeling the planned cuts as "fictional."

Conservative Proposals and Government Response

The Conservative leader outlined plans to reduce borrowing by cutting £70 billion in spending, primarily targeting welfare, the number of civil servants, and foreign aid. Meanwhile, the Liberal Democrats have proposed a £14 billion "breathing space" budget, including cuts to fuel duty, rail fares, and VAT on electric vehicle charging. A Labour Party spokesperson rejected Badenoch's criticisms, citing £500 billion in secured private investment and faster-than-expected economic growth.