Conservatives unveil plan to cut public spending by £47bn over five years
The Conservative Party is set to publish a blueprint outlining substantial reductions in public spending, targeting welfare, international aid, and the civil service. The proposal, if enacted, would save about £47 billion over five years and is pitched as a necessary step to restore financial discipline after years of rising costs and political contention over the size of the state.
In a speech expected to be delivered to the party conference in Manchester, Sir Mel Stride is anticipated to argue that there is no longer “any room” for spending money the government does not have. The plan frames the policy as a move toward fiscal responsibility, stressing that authorities must balance the books while continuing to protect essential services.
Where the cuts would land
The Conservative proposals would reduce welfare expenditure by limiting certain claims, including a potentially stricter stance on people with what it characterises as “low level mental health problems.” The approach would argue that the emphasis should be on treatment and support, rather than cash benefits in some of these cases.
Public sector reform would involve a sizeable reduction in civil servants, with a target of around 132,000 fewer roles—roughly a 25% cut in staff. The plan argues that a leaner civil service would deliver more efficient public services and lower overhead costs, while aiming to preserve front-line services where they matter most.
International aid is also in the firing line, with the party proposing a cut to aid spending to 0.1% of national income, a move from the current level and a sharp departure from recent commitments. The aim, according to the plan, is to reallocate resources to areas with higher immediate impact on national security and domestic welfare priorities.
What this means for benefits and caps
The Conservatives say that reforms would retain certain protections, such as the two-child cap on benefits, which currently limits payments for a third or subsequent child in families on universal credit or child tax credit. Proponents argue the cap is a matter of fairness and personal responsibility, while critics say it leaves some of the poorest households with fewer resources to meet rising living costs.
Analysts note that the plan follows a broader debate about the growth of health and disability benefits. The Office for Budget Responsibility has projected that total health and disability benefits will rise sharply in the coming years, a trend the Conservatives say must be addressed through a combination of targeted reforms and efficiency improvements rather than blanket spending increases.
Political context and potential impact
The Shadow Chancellor and other Labour figures have warned against aggressive cuts and have pointed to potential risks for vulnerable groups. Labour, in governing terms, has already faced internal tensions over disability and health-related benefits reforms, highlighting the political tightrope any party must walk when adjusting welfare programs.
Meanwhile, the Conservative plan arrives on the eve of the Autumn Budget, with the Chancellor’s office signaling that every pound of public spending will be scrutinised. If the plan moves from proposal to policy, it would have wide-ranging implications for welfare recipients, civil servants, and international aid partners, as well as for the political climate ahead of future elections.
Looking ahead
Tax and spending decisions, including how to handle the public deficit and debt, are set to dominate debate as the government pledges to bring spending back to what it calls a sustainable level. Whether these proposed £47bn cuts translate into implemented reform remains to be seen, as negotiations and parliamentary votes will determine the fate of each measure.
