Rachel Reeves stated that she will not heed any suggestions from Conservative leader Kemi Badenoch, who urged collaboration with the government to reduce welfare spending. The Chancellor rebuffed Badenoch’s proposal, criticizing her for being part of a government that caused economic turmoil. Labour criticized the Conservative Party, calling Badenoch’s plea “delusional” and expressing distrust in the Tories’ ability to govern effectively.
During a speech, Badenoch invited Keir Starmer to work together on cutting the benefits bill, suggesting that Tory support could help Starmer pass his plans through the Commons if some Labour MPs rebel. Badenoch emphasized the importance of preventing economic downturn, inflation, and loss of business confidence, urging Starmer to accept assistance to succeed in cutting spending.
Addressing the Institute of Chartered Accountants of England and Wales, Badenoch emphasized the need for Britain to acknowledge that its standard of living is not guaranteed. She highlighted that the country is overspending on welfare, union pay rises, and debt interest, living beyond its means.
In response to the Tory offer of support, Rachel Reeves emphasized the Labour Party’s focus on economic growth and improving working people’s welfare. She dismissed the idea of taking advice from the Leader of the Opposition, highlighting past economic failures under the Conservative government.
A Labour Party spokesperson criticized Badenoch and the Conservative Party for their economic approach, stating that the Tories’ governance led to economic instability and financial struggles for the public. The spokesperson emphasized the lack of trust in the Conservatives’ ability to lead effectively.
A Department for Work and Pensions source questioned Badenoch’s credibility, pointing out the Conservatives’ failure to reform the welfare system during their time in office. The source highlighted the need for an apology from Badenoch for the state in which the Tories left the welfare system.
Recent developments, including Keir Starmer appointing Pat McFadden to the Department for Work and Pensions, suggest a potential move to reduce the welfare bill in the near future. The Prime Minister faced opposition and had to backtrack on welfare proposals, including cuts to disability benefits, following a rebellion by Labour MPs in July.