The Conservatives and Reform UK are preparing criticisms of Andy Burnham's government and competing economic proposals ahead of Chancellor John Healey's first Budget on Wednesday. The Budget will test the new Labour administration and present challenges for the rightwing opposition parties as both seek voters' attention.
Conservative leader Kemi Badenoch this week urged the government to reduce borrowing and highlighted Conservative proposals to cut the deficit through lower welfare spending. Badenoch's forceful response to Rachel Reeves' Budget last year marked a turning point in Badenoch's leadership. Reform leader Nigel Farage argued that the government was "handing out mental health disability like Smarties", which would leave the UK "bankrupt as a country".
However, Downing Street has postponed two major welfare reviews until after the Budget: the Milburn report on helping young people outside employment, education or training, and the Timms report on disability benefits reform. The postponements may weaken the Conservatives' and Reform's preferred criticisms. Tim Bale, a politics professor at Queen Mary University of London, said a signal from Healey supporting welfare reform would complicate Conservative demands for cuts before Labour's plans become known.
Badenoch used the Conservative annual conference this month to shift the party's priority from migration, where the Conservatives struggle to compete with Reform, to the economy. Badenoch promised a Thatcherite programme of lower taxes, reduced spending and fewer regulations. However, voters still remember the Conservatives' 14 years in government, when borrowing rose sharply and the tax burden reached a 70-year high. YouGov's tracker shows Labour drew level with the Conservatives this month as the parties most trusted on the economy, with each receiving 21 per cent. Reform ranks third with 12 per cent, according to YouGov.
The Conservatives and Reform are urging Healey to commit to military spending of 3 per cent of GDP by 2030. Healey resigned as defence secretary over that issue in June, triggering the end of Sir Keir Starmer's premiership. Badenoch called Labour's delay "unconscionable" and warned this week that Healey would need to explain any decision to defer defence funding details until next year's spending review. Reform Treasury spokesperson Robert Jenrick accused Healey on Tuesday of a "betrayal of everything he said he stood for". Farage promised to abolish tax on pay for military reservists.
Badenoch will respond to the Budget in the House of Commons on Wednesday as leader of the official opposition. However, Reform receives less parliamentary speaking time because Reform has few MPs. Farage and Jenrick plan to release an alternative Budget on Monday, which party officials said would demonstrate Reform's readiness to govern. Farage and Jenrick have both said Labour cannot reform welfare. Farage and Jenrick have also warned that an economic crisis is approaching.
Reform officials said Farage and deputy leader Richard Tice, also Reform's business spokesperson, will attend the Commons on Wednesday. Jenrick also plans to attend, but Jenrick will leave before the debate ends to respond online. One Reform official said Farage waited hours to speak during a previous Budget debate. The official said that experience demonstrated the importance of attracting attention outside the Commons.
Jenrick has called the prime minister "Benefits Burnham" to draw attention to high welfare spending. Jenrick has also called the Conservative leader "Kensington Kemi" to portray the Conservatives as supporting wealthy people. Healey is expected to increase taxes in the Budget after signalling higher taxes on banks. However, the Conservatives and Reform promise tax reductions aimed at different groups. Badenoch made a substantial inheritance tax reduction the central proposal of Badenoch's conference speech, prompting accusations that Badenoch prioritises wealthy people. Reform has promised tax cuts for lower and middle earners by increasing the tax-free personal allowance from £12,570 to £15,000.
The Conservatives and Reform will also issue immediate responses to unexpected announcements on Budget day. Institute for Fiscal Studies director Helen Miller said chancellors always seek to include a surprise announcement. Miller said opposition parties would assess those surprises for opportunities to criticise the government.
UK Opposition Parties Prepare Economic Criticisms for John Healey's First Budget
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Summary
John Healey’s first Budget faces sharp scrutiny from UK opposition parties. The Conservatives and Reform UK are set to challenge economic policies, with Kemi Badenoch pushing for lower borrowing and welfare cuts, while Nigel Farage targets disability benefit mismanagement. Reform will unveil an alternative Budget on Monday, emphasizing governance. Both parties also criticized delays in defense spending and tax plans. Traders using TA for crypto and tracking economic calendar trading will watch for market reactions as political tensions build ahead of the official announcement.
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