In this week’s Editor’s Digest newsletter, Roula Khalaf, Editor of the FT, highlights the key stories of the week. One of the major stories is the claim by Rishi Sunak that the Conservatives plan to save £12bn from the welfare bill by the end of the next parliament. Sunak emphasized the importance of keeping people in work and off benefits, framing it as a “moral mission.” The Conservatives are set to launch their manifesto on Tuesday, which will include a crackdown on welfare and a promise to make the scheme exempting first-time homebuyers from stamp duty permanent.
The prime minister is facing challenges in his election campaign after a recent setback during D-Day commemorative events, where he was forced to apologize for leaving early. Polls continue to show Labour with a significant lead over the Tories, leading to concerns within the Conservative party about the effectiveness of their campaign. Nigel Farage’s Reform UK party is also seen as a rising threat, potentially overtaking the Conservatives in the polls.
Sunak is focusing on welfare reforms to reduce the number of people claiming benefits and to encourage more individuals to remain in the workforce. He has highlighted the increase in the number of inactive individuals due to health reasons, as well as the projected rise in the benefit bill for those with disabilities or health conditions. Sunak stressed the importance of work as a source of dignity, purpose, and hope, and announced additional investment in mental health treatment as part of the proposed reforms.
However, some experts, such as Tom Waters from the Institute for Fiscal Studies, are skeptical about the potential savings that could be achieved through the welfare reforms. Waters cautioned that achieving the £12bn saving target may be challenging and expressed doubts about the effectiveness of the proposed measures. Labour criticized Sunak’s announcement as a desperate attempt to deflect attention from the rising benefits bill attributed to the government’s policies.
In a separate development, Jeremy Hunt, Chancellor, highlighted the Conservatives’ goal of cutting taxes for individuals earning over £100,000 and removing tax “cliff edges” in the current system. Hunt emphasized the party’s desire to make progress in tax cuts for higher earners, signaling a potential shift in tax policy in the future. As the election campaign heats up, both major parties are unveiling their manifesto commitments and strategies to appeal to voters and secure their position in the upcoming election.
Discussion about this post