This article is from the source 'bbc' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.bbc.com/news/articles/c4gzv9j78dyo

The article has changed 9 times. There is an RSS feed of changes available.

Version 5 Version 6
Conservatives announce £5,000 tax rebate for young home buyers Conservatives announce £5,000 tax rebate for young home buyers
(about 2 hours later)
The Conservatives have 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 say they would give young people a £5,000 tax rebate in their first job, in a bid to help them buy their first home.
In his speech to the party's conference in Manchester, shadow chancellor Mel Stride announced proposals for a "first-job bonus" that would divert National Insurance payments into a long-term savings account. In his speech to the party's annual conference, shadow chancellor Sir Mel Stride also said the party would abolish business rates for high street shops.
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. Under the proposals, retail, hospitality and leisure firms in England would be exempted from the tax, up to an annual limit of £110,000 per year.
In a speech on Monday, Sir Mel said that there was "no more pretending we can keep spending money we simply do not have". The party says both policies would be paid for from a savings drive worth £47bn a year from cuts to welfare, the civil service and foreign aid.
Proposals include stopping welfare claims for people with "low-level mental health problems" and reducing the number of civil servants by around 132,000 to bring it back to 2016 staffing levels - a pledge made under Boris Johnson. In his speech, Sir Mel sought to draw a line under Liz Truss's disastrous 2022 mini-budget, in a bid to reposition the Tories as the only party that can be trusted to effectively manage the public finances.
Sir Mel announced his party would reduce aid spending by £7bn, by reducing the budget to 0.1% of national income, from 0.5% currently. He attacked Labour's record in office, adding they would leave a "mountain of debt for the next generation".
The conference in Manchester marks almost one year since Kemi Badenoch was elected party leader. But he argued Reform UK's spending plans were "just as bad", accusing the party of promising "tens of billions in unfunded commitments" at the last election.
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. He told activists that Nigel Farage's party were "marching to the left" on economic policy, with "more spending and more debt".
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. "We're the only party that gets it. The only party that will stand up for fiscal responsibility," he added.
It comes as the Labour government has unveiled major housing market reform plans which will make sellers and estate agents legally required to provide more information about a property up front, in a bid to reduce the cost of moving. "And that means we have to face some hard truths to which other parties turn a blind eye."
The Conservatives say their £47bn target would be delivered over the lifetime of a five-year Parliament by saving: £5,000 savings pot
£23bn from the welfare bill Under the Tory housing plans, people would see the first £5,000 of National Insurance they would have paid in their first job redirected into a nominated savings account of their choice.
£8bn by bringing civil servant numbers from 517,000 down to 2016 levels of 384,000 The proposals, branded the First Job Bonus, would allow couples to save a combined £10,000, in a policy that would cost £2.8bn a year, the party says.
£7bn from the overseas aid budget Those benefiting from the scheme, would be restricted to British nationals, would be able to draw down the pot after five years.
Sir Mel said it would allow young people to put the money towards a house deposit, or "savings for later life". The party later confirmed it would not seek to restrict how the money can be spent after withdrawal.
The proposal to abolish business rates would effectively expand an existing relief up to the £110,000 cap from the current 40% to 100%. The party estimates it would cost the Treasury around £4bn a year by 2029.
The Conservatives say their cuts would shrink government spending by £47bn a year from 2029/30 onwards, by saving:
£23bn through cuts to the welfare bill, including by reducing payments to those with "lower level mental health issues"
£8bn by reducing the Civil Service by around 132,000 to bring it back to 2016 staffing levels - a pledge made under Boris Johnson
£6.9bn by further reducing the overseas aid budget to 0.1% of national income, from 0.5% currently
£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.
Speaking to BBC Radio 4, Sir Mel said welfare savings could be delivered by reducing payments to those with "lower level mental health issues", citing mild depression, anxiety, and attention deficit hyperactivity disorder (ADHD). The party says its business rates and house deposit policies, combined with existing pledges such as reversing VAT on private school fees, would use up around £9bn of the £47bn savings it is planning to make.
Speaking to BBC Radio 4, Sir Mel cited depression, anxiety, and attention deficit hyperactivity disorder (ADHD) as conditions where the party would seek to reduce working-age benefit payments.
The Tories also want to review 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 also want to review exemptions for the household benefit cap, limiting the VAT subsidy for Motability - which allows claimants to lease vehicles - and changing obligations for job-seekers.
He defended the party's decision not to back a government attempt to cut nearly £5bn from the disability and health-related benefits bill.
Labour ministers, he added, had been "pulling a quick lever to make quick savings" whereas the Tories were interested in "fundamental reform".
He also insisted the Tories' policy of restricting foreign nationals' access to disability and sickness benefits was backed by the public, adding that the Tories wanted British citizenship to "really mean something here".
Those losing their benefits could try to find a better-paying job or work additional hours, he suggested, and would also "have an option to return to other parts of the world".
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.
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.
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".
Sign up for our Politics Essential newsletter to keep up with the inner workings of Westminster and beyond.Sign up for our Politics Essential newsletter to keep up with the inner workings of Westminster and beyond.