To deliver a Stronger Economy it's vital our country lives within its means.
That's why we've unveiled £47 billion worth of savings, to reduce the deficit and enable us to responsibly deliver tax cuts.
Kemi's Golden Economic Rule means that at least half of all savings identified will go towards deficit reduction, with the other half going to tax cuts and pro-growth measures.
Our economic plan also involves reducing electricity costs with our Cheap Power Plan and cutting regulations that are holding businesses back.
Read more about it below.
Our Savings Plan
- Reform welfare and get people back to work saving £23 billion
- Reduce Civil Service headcount by 132,000 (back to 2016 levels) saving £8 billion
- Implement our BORDERS plan and end asylum hotels saving £3.5 billion
- Restrict social housing to British nationals saving £3.9 billion
- Scrap the costly and ineffective green subsidies being pushed by Ed Miliband saving £1.6 billion
- Cut overseas aid saving £7 billion
Total savings: £47 billion.
Tax cuts, growth measures and Kemi’s Golden Economic Rule
For every £1 saved in public spending, at least half will go towards reducing the deficit.
The remainder will go towards affordable tax cuts and other pro-growth measures, including:
- Abolishing Stamp Duty Land Tax on primary residences
- Scrapping business rates for thousands of high street businesses
- Introducing a First Job Bonus a £5,000 tax cut for young people entering work for the first time, paid into a savings account
- Repealing the Family Farm Tax and safeguarding our food security
- Repealing the Family Business Tax to support the makers and risk-takers who drive economic growth
- Repealing the Education Tax supporting parents who invest in their children’s future
- Repealing the Energy Profits Levy backing our energy industry to create jobs and growth
Energy
We’ve made it clear: the 2050 Net Zero target is impossible.
We all want to protect the environment but not by imposing unfair costs on working people and businesses. We will:
- End Labour’s ban on new oil and gas licences and maximise extraction from the North Sea
- Strengthen energy security by boosting domestic supply and reducing dependence on foreign energy
- Scrap the mandate forcing manufacturers to produce electric vehicles and end Labour’s 2030 ban on petrol and diesel cars
- Repeal the Energy Profits Levy backing our energy industry to create jobs and growth
- Reverse Labour's planned 5p hike to fuel duty
To help cut down on the rising cost of electricity, we will implement our Cheap Power Plan, saving the average family £200 a year on electricity bills and deliver major savings for businesses:
- Repeal the Climate Change Act and axe the Carbon Tax entirely (with the associated Carbon Border Adjustment Mechanism) to stop the deindustrialisation of Britain and cut bills
- Abolish VAT on household energy bills for 3 years
Deregulation
We’ll free businesses from unnecessary red tape that holds back growth. To do this, we will:
- Repeal Angela Rayner’s Unemployment act, which costs businesses £5 billion and forces private firms to host union organisers in the workplace
- Make HMRC accountable by letting small businesses grade every interaction with HMRC
- Reform IR35 rules to simplify tax for the self-employed
- Make it easier to open business bank accounts by overhauling regulations that presume guilt
- Scrap all mandatory reporting burdens relating to sustainability and climate change (ESG), which entangle businesses in bureaucracy and undermine growth
- Remove diversity and inclusion reporting requirements for Financial Services businesses
We are reviewing all regulations that are holding businesses back and will announce further deregulation in due course.
Supporting Aspiration with a New Deal for Young People
The Conservatives have unveiled a fully-funded New Deal for Young People, addressing the real challenges facing young people in the 2020s:
- Scrap real interest rates on Plan 2 student loans so balances can no longer rise faster than inflation, saving graduates tens of thousands of pounds over the course of their careers
- Create 100,000 more apprenticeships for 18 to 21 year olds by lifting funding caps and supporting employers with up to £5,000 for every British apprentice they hire
- Introduce a £5,000 First Job Bonus, allowing young people to keep the first £5,000 of National Insurance they would have paid by placing it into a savings account for a first home or future security
We would pay for this by ending funding for wasteful university degrees that trap young people in debt without improving job prospects or career earnings.
This New Deal goes alongside our plan to Scrap Stamp Duty on primary residences, helping young people get on the property ladder.
We are only Party with the clear plan to deliver a brighter future for young people in our country.