Badenoch Set to Pledge National Insurance and Inheritance Tax Cuts, Funded by £30bn in Welfare Reductions

Badenoch's pitch: cut taxes, cut welfare

Kemi Badenoch is scheduled to deliver a speech at the Conservative Party conference in Birmingham in which she will say the Tories will fight a "battle for the soul of the nation" at the next election, according to a report carried by Car Dealer Magazine. She is expected to warn that "something is going to break" without better growth, and to accuse Andy Burnham's Labour of wanting to "wind back the clock to failed ideas of the past," the outlet reported.

The headline policy, according to the Daily Mail, is a plan to slash employers' National Insurance contributions to get young people who are not in education, employment or training back to work. The Sun branded it with the pun "the lady's Neet for turning," calling it a potential "lifeline" for NEET youth.

The Times reports Badenoch will also pledge to cut the rate of inheritance tax, with the whole package funded by £30bn in welfare reductions. The Guardian separately reports the Tories would expand free childcare eligibility to high earners.

Coverage of the plan split along predictable lines. A Telegraph opinion piece called it right to "dismantle one of the most destructive tax traps" in the system. The Independent framed the same speech as a "free-market revival." None of the reporting specifies which welfare programs would absorb the £30bn in cuts, a detail that remains unaddressed heading into the speech.

Labour's own fiscal squeeze

While the Tories talk tax cuts, the governing side is managing its own money troubles. The Guardian reports Chancellor John Healey is considering a £1bn package to help poorer households with energy bills, alongside potentially more radical changes to how much energy companies can charge customers. Sources told the paper no final Budget decisions have been made.

At the same time, the i reports that school budgets in England face a squeeze after Education Secretary Lucy Powell announced a pay rise for teachers would be fully funded, without first consulting the Treasury. Teaching unions quoted by the paper say that leaves "no new money" for schools generally. The Treasury and the Department for Education both deny that account.

Cancer Research UK added its own warning, reported by the Daily Mirror: the NHS will miss its cancer diagnosis and treatment targets by more than three years. The health service's current goal is 2029. The charity says absent improvement, that slips to 2032. The Department of Health said it has already made significant changes but acknowledged "a lot more to do."

Asos says customer data may have been accessed

Online fashion retailer Asos apologized to customers after sending phone alerts about a hack, according to reporting carried by Car Dealer Magazine. The company said it is investigating "unauthorised activity" tied to a third-party platform, and that customer names and contact details "may have been accessed."

The breach follows a string of cyberattacks on UK retailers over roughly the past two years, including Marks & Spencer, Harrods and JLR, the same report noted. Asos has not disclosed how many customers are affected or confirmed what data, beyond names and contact details, may be at risk.

Royal legal fight and markets

Andrew Mountbatten-Windsor has accused Thames Valley Police of taking personal items during searches of his home in February, according to the Daily Telegraph, as part of a broader investigation into allegations of misconduct in public office. He denies wrongdoing and is pursuing legal action against the force. Separately, the Times reports his old Bentley Flying Spur, once fitted with a personalized Duke of York plate and showing just 7,000 miles, is listed for sale at £125,000.

Markets moved modestly on Tuesday ahead of all this. The FTSE 100 closed up 0.4% at 10,541.69, the FTSE 250 rose 0.4% to 24,215.33, and the AIM All-Share gained 0.4% to 783.62, according to data reported by Car Dealer Magazine. The pound traded at $1.3280, up from $1.3218 the previous day, while sterling held roughly flat against the euro at 1.1791.

Badenoch has not yet specified which welfare programs make up the £30bn in cuts funding her tax pledges. Separately, the Treasury and Department for Education have flatly denied the i's reporting on a schools funding shortfall, leaving a factual dispute between officials and teaching unions that has not been independently resolved. Both will likely come into sharper focus once Badenoch's full conference speech and the government's autumn Budget are delivered.