‘Bold rewiring' of economy needed as Tories seek to regain trust, Stride says
The shadow chancellor will say a 'bold rewiring' of the economy is needed as part of Tory efforts to 'regain trust' following the fallout from Liz Truss' mini-budget.
In a speech on Thursday, Mel Stride is expected to promise the Conservatives will 'never again' make offers they cannot afford as the party seeks to forge a 'credible' financial plan for the future.
Taking aim at both Labour and Reform UK, the Tory frontbencher will accuse Chancellor Rachel Reeves of 'fiddling the figures' by changing her definition of national debt, and warn that 'populism is not the answer'.
Addressing the legacy of the 2022 mini-budget under Ms Truss's premiership, which spooked the financial markets and led to a spike in mortgage rates, Mr Stride will say: 'For a few weeks, we put at risk the very stability which Conservatives had always said must be carefully protected.
'The credibility of the UK's economic framework was undermined by spending billions on subsidising energy bills and tax cuts, with no proper plan for how this would be paid for.'
In a furious response, Ms Truss has accused Mr Stride of having 'kowtowed to the failed Treasury orthodoxy' and being 'set on undermining my plan for growth'.
The shadow chancellor will claim that the Tories acted swiftly to restore stability, but the party's credibility would take longer to recover.
'That will take time, and it also requires contrition,' he is expected to say. 'So let me be clear: never again will the Conservative Party undermine fiscal credibility by making promises we cannot afford.'
Ahead of the Chancellor's spending review next week, her opposite number will accuse her of 'abandoning' financial responsibility.
Ms Reeves has two self-imposed 'fiscal rules' – funding day-to-day spending through taxation and for debt, measured by the benchmark of 'public sector net financial liabilities' (PSNFL), to be falling as a share of GDP.
She has insisted these constraints are 'non-negotiable' amid wrangles with Cabinet colleagues over departmental budgets ahead of next week's announcement.
Mr Stride will say: 'At the spending review next week, we can expect her to trumpet all of the additional projects and programmes she is funding – without mentioning the fact it is all being paid for from borrowing.'
Attacking Nigel Farage's Reform party after its gains in the local elections last month, the shadow chancellor will say: 'Take Reform. Their economic prescription is pure populism. It doubles down on the 'magic money tree' we thought had been banished with Jeremy Corbyn.'
During the speech in central London, he will say the two 'core priorities' for the party will be 'stability and fiscal responsibility', with control of spending and reform of welfare and public services.
He will add: 'And a bold rewiring of the British economy – to unleash growth, productivity, and opportunity across the country.'
Conservative leader Kemi Badenoch has said that the comeback she anticipates for the party will take time as it seeks to avoid 'rushing' into policy commitments.
Mr Stride will insist modern politics requires more 'thoughtfulness', with the Conservatives planning to spend the next four years forging a 'credible' plan to return to government.
'We will need to take our time if we are to forge a credible plan that delivers for the people of our country,' he will say.
'Over the next four years, our party will do just that.'
Since being ejected from Number 10 after just 49 days in office, Ms Truss has conceded her plan to quickly abolish the 45p top rate of tax went too far, but otherwise defended her failed bid to boost growth.
Responding to the Tory announcement on Thursday, she said: 'Mel Stride was one of the Conservative MPs who kowtowed to the failed Treasury orthodoxy and was set on undermining my Plan for Growth from the moment I beat his chosen candidate for the party leadership.
'Even when judged by the OBR's flawed calculations, my plans were chalked up as costing less than the spending spree Rishi Sunak pursued as Chancellor during the pandemic – yet Mel Stride never took him to task over any of that.
'And why has he singularly failed to examine the role played by the Bank of England in causing the LDI crisis that sent gilt rates spiralling? Why has he never asked the pertinent questions of the Governor, despite the Bank since admitting that two-thirds of the gilt spike was down to them?
'My plan to turbocharge the economy and get Britain growing again provided the only pathway for the Conservatives to avoid a catastrophic defeat at the election.'
She added: 'Until Mel Stride admits the economic failings of the last Conservative Government, the British public will not trust the party with the reins of power again.'
Reform's deputy leader Richard Tice said: 'We'll take no lectures on economics from a party that more than doubled the national debt, raised taxes and government spending to 70-year highs and shrank economic growth to 70-year lows.
'Meanwhile, we unearth Tory-run councils wasting £30 million on a bridge to nowhere. They can never be trusted again.'
The Liberal Democrats accused the Conservatives of attacking Mr Farage's party for 'the same fantasy economics' they had pursued 'while secretly plotting a pact with them' as they branded the speech 'absurd'.
Deputy leader Daisy Cooper MP said: 'It's insulting that the Conservatives think a few warm words will fool people into forgiving them for all the damage they did to the economy and people's livelihoods.
'Families are still reeling from the Conservatives' lockdown law-breaking and still paying the price after their mini budget sent mortgages spiralling.
'Now the Conservatives have the cheek to criticise Reform UK for the same fantasy economics while secretly plotting a pact with them: it's absurd.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Finextra
24 minutes ago
- Finextra
Fiserv to acquire AIB Merchant Services
Founded in 2007 as a joint venture between AIB and Fiserv, AIB Merchant Services (AIBMS) is one of Ireland's largest payment solution providers and one of Europe's largest e-commerce acquirers, providing businesses with the ability to accept card payments from their customers. 0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. AIB has agreed on the sale of its minority stake in AIB Merchant Services (AIBMS) to Fiserv, with the transaction expected to be completed later this year subject to all relevant regulatory approvals and customary closing conditions. There will be no day-to-day change for AIBMS customers as a result of this announcement and no customer action is required. Upon completion, the transaction is expected to result in a circa 35bps positive impact on AIB's CET1 capital. In 2024, AIB recognised income of €34 million relating to AIBMS in its income from equity accounted investments line. Further, AIB will continue to work with Fiserv by referring AIB customers who require these services to AIBMS, which will support them in their business needs. AIBMS will continue to operate as AIBMS, under a short-term brand agreement, allowing for an orderly exit of the AIB brand from the business. Colin Hunt, CEO, AIB, says: "Following a successful Joint Venture partnership, we believe Fiserv has the commitment, experience and innovative technical solutions to grow AIBMS and that our customers will continue to be well-served under their sole ownership. Recognising the strength of the AIB customer franchise, we are pleased to support our business customers by maintaining a close on-going relationship with Fiserv." Katia Karpova, head of EMEA, Fiserv, adds: "We have enjoyed a strong partnership with AIB Group, as together we grew AIBMS into one of the leading acquirers in Europe, and I look forward to continuing to work closely with them to support our mutual clients. Our focus will remain on delivering market-leading solutions to clients of all sizes across Ireland and the broader European market. We are particularly excited for the opportunity to accelerate the local penetration and growth of Clover, the world's smartest point-of-sale system and business management platform."
Telegraph
25 minutes ago
- Telegraph
Kemi Badenoch to give speech on the ECHR
Kemi Badenoch is set to use a major speech to declare she is 'increasingly of the view' that the UK should withdraw from the European Convention on Human Rights. The leader of the Conservative Party is expected to set out a plan to launch a commission into whether Britain should quit the treaty. The ECHR was a dividing issue in last year's Conservative leadership election, with Mrs Badenoch's rival Robert Jenrick championing the idea that Britain should pull out. Critics of the treaty want to leave it because it has been used to frustrate attempts to deport migrants from Britain. Mrs Badenoch is expected to say that she is 'increasingly of the view that we will need to leave, because I am yet to see a clear and coherent route to change within our current legal structures'. 'I have always been clear that if our national interest means that we need to leave the ECHR, we will leave,' the Conservative leader will say. She will add: 'But I say that not because of any particular obsession with international law or with our treaty arrangements. I say that because for me, the most important thing is making our country safer, richer and fairer.'
The Guardian
25 minutes ago
- The Guardian
Hedge fund orders London-based analysts back to office five days a week
Man Group has ordered its London-based analysts to return temporarily to the office five days a week, as the world's biggest listed hedge fund seeks to recover from a period of poor performance sparked by Donald Trump's tariff war. Quantitative analysts working at Man AHL, the company's computer-run fund that aims to identify and follow momentum in markets, have been told they are expected to be in its offices daily until the end of July as part of an 'all hands on deck' project. The edict applies to about 150 staff in London, just under 10% of the overall group's 1,700 global employees, the Financial Times reported. 'Man AHL has asked its staff in London to work in the office five days a week for a three-month period to support an 'all hands on deck' cross-team research project,' the company said. 'While these cross-team initiatives are infrequent, experience has shown that a period of highly focused, in-person collaboration allows significant research progress to be made in a relatively short amount of time.' The company, which has been a champion of flexible working arrangements including working from home, said that its 'broader agile working policy remains unchanged'. Employees tend to be in the office three days a week, on average. However, this varies by role. Trump's destabilising tariff war has resulted in significant volatility in global markets, which has made it difficult for computer-based funds such as AHL to predict market trends. The company's most recent financial statement showed that the start of Trump's trade war in April wiped out all of the assets under management gains made by Man Group in the first quarter. Its holdings were up $4bn in the first three months of the year but plummeted by $5.6bn in the first two weeks of April. The AHL Alpha programme, Man's institutional trend-following strategy, has lost 10% so far this year. Man Group's share price is down more than 30% over the past year. Man Group is the latest major financial services company to revisit its flexible working policies. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Last month, BlackRock, the world's biggest asset management company, told its approximately 1,000 managing directors globally that they were expected to work from the office full time. The New York-based company last told staff in 2023 that they had to go into the office at least four days a week. Earlier this year, JP Morgan Chase summoned all its workers back into the office. Jamie Dimon, the head of the bank, has long been a proponent of restoring pre-pandemic working patterns. Barclays also hardened its stance on remote working earlier this year, saying that all staff should work from the office at least three days a week, up from a previous requirement of two days.
