Overview

• Kemi Badenoch used a speech in London to accuse the government of creating a “tax doom loop” and urged deep welfare savings over tax rises.
• She offered cross-party help to pass welfare legislation only if it reduced total welfare spending, citing Labour’s failed attempt to trim disability benefits after a backbench revolt.
• Chancellor Rachel Reeves dismissed the proposal in the Commons, saying she would not take advice from the Conservatives and echoing Labour’s charge that they “crashed the economy.”
• Badenoch warned the chancellor may have to raise taxes at the Autumn Budget without welfare cuts, pointing to pressure reflected in OBR forecasts and rising debt costs.
• The Conservatives say their 120 MPs could help offset potential Labour rebellions on welfare, but Labour’s swift rejection leaves the parliamentary impasse unchanged.