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| Conservatives to announce £5,000 tax rebate for young homebuyers | Conservatives to announce £5,000 tax rebate for young homebuyers |
| (about 1 hour later) | |
| The Conservatives will set out plans to "reward work" by giving young people a £5,000 tax rebate towards their first home when they get their first full time job. | The Conservatives will set out plans to "reward work" by giving young people a £5,000 tax rebate towards their first home when they get their first full time job. |
| In his speech to the party's conference in Manchester, shadow chancellor Mel Stride is expected to announce proposals for a "first-job bonus" that would divert national insurance payments into a long-term savings account. | |
| The party says the plans will be funded by cuts to public spending worth £47bn over five years in areas such as welfare, the civil service and the foreign aid budget. | The party says the plans will be funded by cuts to public spending worth £47bn over five years in areas such as welfare, the civil service and the foreign aid budget. |
| Sir Mel's speech on Monday is expected to say that there is "no more pretending we can keep spending money we simply do not have". | |
| Proposals include stopping welfare claims for people with "low-level mental health problems" and reducing the number of civil servants by around 132,000, a reduction of around a quarter. | |
| Sir Mel will also say his party would reduce aid spending by £7 billion to 0.1% of national income. | Sir Mel will also say his party would reduce aid spending by £7 billion to 0.1% of national income. |
| The conference in Manchester marks almost one year since Kemi Badenoch was elected party leader. | The conference in Manchester marks almost one year since Kemi Badenoch was elected party leader. |
| In the last 12 months, the party has struggled to counter the political threat posed by Reform UK and suffered heavy defeats in this year's local elections. | In the last 12 months, the party has struggled to counter the political threat posed by Reform UK and suffered heavy defeats in this year's local elections. |
| During their conference, which began on Sunday, the Conservatives are hoping to portray themselves as more competent and more credible - particularly on public spending - than their political rivals. | During their conference, which began on Sunday, the Conservatives are hoping to portray themselves as more competent and more credible - particularly on public spending - than their political rivals. |
| It comes as the Labour government has unveiled major housing market reform plans which will aim to cut costs, reduce delays and halve failed sales. | |
| Hundreds of thousands of families and first-time buyers could benefit from the reforms, in what the government claims would be the biggest house buying shakeup in decades. | Hundreds of thousands of families and first-time buyers could benefit from the reforms, in what the government claims would be the biggest house buying shakeup in decades. |
| In his conference speech on Monday, Sir Mel will say: "We must get on top of government spending. | |
| "We cannot deliver stability unless we live within our means. | "We cannot deliver stability unless we live within our means. |
| "We're the only party that gets it. The only party that will stand up for fiscal responsibility." | "We're the only party that gets it. The only party that will stand up for fiscal responsibility." |
| His proposals include saving: | His proposals include saving: |
| £23bn from the welfare bill | £23bn from the welfare bill |
| £8bn by bringing civil servant numbers from 517,000 down to 2016 levels of 384,000 | £8bn by bringing civil servant numbers from 517,000 down to 2016 levels of 384,000 |
| £7bn from the overseas aid budget | £7bn from the overseas aid budget |
| £3.5bn by ending the use of hotels to home asylum seekers | £3.5bn by ending the use of hotels to home asylum seekers |
| £4bn by ensuring benefits and social housing are reserved for UK nationals | £4bn by ensuring benefits and social housing are reserved for UK nationals |
| £1.6bn by scrapping environmental policies, including cutting subsidies for heat pumps and electric vehicles. | £1.6bn by scrapping environmental policies, including cutting subsidies for heat pumps and electric vehicles. |
| Earlier this year, the Labour government sought to cut nearly £5bn from the disability and health-related benefits bill but had to backtrack after a rebellion by its own MPs. | Earlier this year, the Labour government sought to cut nearly £5bn from the disability and health-related benefits bill but had to backtrack after a rebellion by its own MPs. |
| Work and Pensions Secretary Pat McFadden has suggested the government will return to the issue, telling the BBC that changes to the welfare system "must happen". | Work and Pensions Secretary Pat McFadden has suggested the government will return to the issue, telling the BBC that changes to the welfare system "must happen". |
| Last year, the Office for Budget Responsibility forecast that total spending on health and disability benefits would rise from £64.7bn in 2023-24 to £100.7bn in 2029-30. | Last year, the Office for Budget Responsibility forecast that total spending on health and disability benefits would rise from £64.7bn in 2023-24 to £100.7bn in 2029-30. |
| The Tories argue they can reduce the bill by reviewing exemptions for the Household Benefit Cap, limiting the VAT subsidy for Motability - which allows claimants to lease vehicles - and changing obligations for job-seekers. | The Tories argue they can reduce the bill by reviewing exemptions for the Household Benefit Cap, limiting the VAT subsidy for Motability - which allows claimants to lease vehicles - and changing obligations for job-seekers. |
| It says it would stop claims for people suffering from "low-level health" mental health problems arguing that "what is really needed is treatment and support, not cash". | It says it would stop claims for people suffering from "low-level health" mental health problems arguing that "what is really needed is treatment and support, not cash". |
| It also says it would keep in place the two-child benefit cap, which prevents households on universal or child tax credit from receiving payments for a third or subsequent child born after April 2017. | It also says it would keep in place the two-child benefit cap, which prevents households on universal or child tax credit from receiving payments for a third or subsequent child born after April 2017. |
| The Labour government has been under pressure to remove the cap, with many of its backbenchers arguing the limit has increased the number of children in poverty. | The Labour government has been under pressure to remove the cap, with many of its backbenchers arguing the limit has increased the number of children in poverty. |
| The Resolution Foundation says axing the cap would lift 470,000 children out of poverty and would cost around £3.5bn. | The Resolution Foundation says axing the cap would lift 470,000 children out of poverty and would cost around £3.5bn. |
| Badenoch has previously defended the cap saying it was a matter of "fairness" and Conservatives believed people on benefits "should have to make the same choices on having children as everyone else". | Badenoch has previously defended the cap saying it was a matter of "fairness" and Conservatives believed people on benefits "should have to make the same choices on having children as everyone else". |
| Earlier this year, Prime Minister Sir Keir Starmer said he would cut the UK's aid budget from 0.5% of gross national income to 0.3% in 2027 in order to pay for an increase in defence spending. | Earlier this year, Prime Minister Sir Keir Starmer said he would cut the UK's aid budget from 0.5% of gross national income to 0.3% in 2027 in order to pay for an increase in defence spending. |
| The Conservatives say further reducing spending to 0.1% would save nearly £7bn. | The Conservatives say further reducing spending to 0.1% would save nearly £7bn. |
| Currently, a portion of the existing aid budget is used to pay for hotels to accommodate asylum seekers. | Currently, a portion of the existing aid budget is used to pay for hotels to accommodate asylum seekers. |
| The Institute for Economic Affairs (IEA) think tank welcomed some of the proposals but warned the Conservatives not to ignore "elephant in the room" of age-related spending such as pensions. | The Institute for Economic Affairs (IEA) think tank welcomed some of the proposals but warned the Conservatives not to ignore "elephant in the room" of age-related spending such as pensions. |
| Tom Clougherty, IEA executive director, said: "Ultimately, no political party is going to be able to balance the books only by cutting things their supporters don't like. | Tom Clougherty, IEA executive director, said: "Ultimately, no political party is going to be able to balance the books only by cutting things their supporters don't like. |
| "Without that, other cuts are likely to amount to running to stand still." | "Without that, other cuts are likely to amount to running to stand still." |
| The Conservatives have not committed to changing the triple lock, which guarantees that the state pension will go up each year in line with either inflation, wage increases or 2.5% - whichever is the highest. | The Conservatives have not committed to changing the triple lock, which guarantees that the state pension will go up each year in line with either inflation, wage increases or 2.5% - whichever is the highest. |
| Romilly Greenhill, chief executive of Bond, the network of international development organisations, said the proposed aid budget cuts were "reckless, short-sighted, and morally indefensible". | Romilly Greenhill, chief executive of Bond, the network of international development organisations, said the proposed aid budget cuts were "reckless, short-sighted, and morally indefensible". |
| The Conservative conference comes six weeks before Chancellor Rachel Reeves delivers her Budget on 26 November. | The Conservative conference comes six weeks before Chancellor Rachel Reeves delivers her Budget on 26 November. |
| During the election, Labour promised not to increase income tax, National Insurance or VAT for working people. | During the election, Labour promised not to increase income tax, National Insurance or VAT for working people. |
| However, there has been speculation that Reeves will need to raise taxes in order to meet her self-imposed rules for public spending and debt. | However, there has been speculation that Reeves will need to raise taxes in order to meet her self-imposed rules for public spending and debt. |
| In a report in March, the Office for Budget Responsibility said the chancellor only had a "very small margin" - £10bn buffer - in which to operate. | In a report in March, the Office for Budget Responsibility said the chancellor only had a "very small margin" - £10bn buffer - in which to operate. |