Conservatives unveil a plan to cut £47bn in public spending
The Conservative Party is set to announce a comprehensive package of public spending reductions designed to trim roughly £47 billion from the national bill over five years. The proposals, outlined ahead of the party conference in Manchester, target welfare, international aid, and civil service headcounts. The move signals a hard-edged approach to deficit reduction and a pivot away from a strategy of expanding public spending that party leaders say is unsustainable.
Welfare reforms and mental health criteria
Central to the plan is a tightening of welfare eligibility, including proposed restrictions on claims for individuals with what the party describes as low-level mental health problems. The published concept notes argue that “treatment and support” should be the focus for people facing mental health challenges, rather than expanded cash transfers. Critics warn such changes could increase hardship for vulnerable groups, while supporters argue they would prevent welfare dependence and reallocate resources to those in greatest need.
Aid spending reduced to 0.1% of national income
In a bid to meet conservative fiscal targets, the party would slash aid spending to 0.1% of national income, a move equating to around £7 billion in savings. This proposal aligns with a stance that foreign aid should be tightly framed as a strategic expenditure rather than a default budget allocation. The plan’s authors argue that funds redirected from aid could be better spent on domestic priorities and defence.
Civil service reform: aiming for substantial staff reductions
The package would also pursue significant civil service reform, with a target of reducing the number of civil servants by about 132,000—a roughly 25% cut. Officials say the reduction would streamline government operations, lower administrative costs, and improve efficiency. Critics caution such a large decline could hamper public services and bureaucratic capability, especially in departments managing complex welfare and defence tasks.
Household benefits and policy exemptions under review
The Conservatives propose reviewing exemptions tied to the Household Benefit Cap and altering VAT subsidies linked to Motability, as well as reconsidering obligations for job-seekers. The aim is to reinterpret what counts as necessary support, while arguing these changes would preserve fairness and ensure welfare spending remains within affordable bounds.
Two-child cap and poverty considerations
The plan reiterates support for maintaining the two-child limit on certain benefit payments introduced by the previous administration. Proponents argue the cap fosters responsibility and fairness, while opponents say it contributes to child poverty. Studies cited by supporters claim that repealing or relaxing the cap could lift hundreds of thousands of children out of poverty but would incur substantial cost to the welfare budget.
Timing and political context
The conference announcement comes ahead of the Chancellor’s Budget later in the year, with the Labour government under pressure over welfare reforms and disability benefits. The Opposition has faced rebellion within its ranks on related issues, complicating the broader debate over how much to cut and where to protect vulnerable groups. The Office for Budget Responsibility previously warned of rising health and disability benefit costs, highlighting the delicate balance between fiscal consolidation and social protection.
<h2
