Kemi Badenoch is signalling the return of the low-tax Tories today as she tries to rally her struggling party.

Closing the Conservative conference in Manchester, the leader dismissed fears that the party is finished with supporters switching to Reform. 

She informed activists that only the ‘competent’ Conservative Party can rescue Britain from its severe period of ‘decline.’ They aim to achieve this by stabilizing the economy and reforming what she sees as society’s ‘broken model’.

Mrs Badenoch said the challenge was to ‘secure our borders and restore our strength so our children inherit a country that works’. 

She highlights her firm stance on fiscal discipline and benefits, setting a contrast with Reform’s proposals. The Tories are optimistic that Nigel Farage’s shift towards Labour issues has created opportunities for them.

She told the hall that she was proud to be leading ‘the only party that can meet the test of our generation’. 

‘Britain is stagnating while the world around us moves on,’ she warned. 

Yet, many attendees in Manchester worry that Mrs. Badenoch might not remain in her position by their next meeting. Conservatives are anticipating significant losses in the upcoming local elections in May.

Before Mrs. Badenoch’s speech, the national anthem was played, following some criticism for initially omitting it from the conference’s finale.

Kemi Badenoch is closing the conference in Manchester with a speech arguing that the Conservatives are not finished

Shadow cabinet ministers assembled for Mrs Badenoch’s conference speech 

Mrs Badenoch pointed to the Tories’ historic achievements – including setting up the modern police force and Brexit. 

She said: ‘Every generation must face its test.

‘In the 1940s, our test was to defeat fascism and ensure victory of freedom.

‘In the 1980s, it was to banish socialism and deliver prosperity.

‘Our challenge for the 2020s is to reestablish a strong economy, ensure our borders are secure, and revitalize Britain’s power so that our children inherit a functioning nation.’

‘Ladies and gentlemen, thank you for your continued support. You stand with the only party capable of meeting this generational challenge, building a stronger economy and more secure borders.’

Mrs Badenoch is pledging to ‘bring down the taxes stifling our economy’ and reverse Labour’s ‘borrowing and tax doom loop’.

She will unveil plans for a new ‘golden rule’ which will require half of every pound saved to be used for cutting the deficit, with the other half spent on tax cuts and boosting the economy.

The Tories have been sounding tough noises on illegal immigration, including committing to quit the European Convention on Human Rights (ECHR) and deport 750,000 people with no right to be in this country.

However, Tory strategists believe the party’s best hope lies in restoring its battered economic credentials.

In her keynote speech, Mrs Badenoch will say the Conservative approach ‘starts with fiscal responsibility’, adding: ‘We have to get the deficit down.’

‘Over the next decade, Rachel Reeves is going to double the deficit with her borrowing and tax doom loop,’ she will say. 

‘It’s not sustainable and it’s not fair. It is stealing from our children and grandchildren. And Conservatives will put a stop to it.’

Shadow chancellor Mel Stride announced plans this week to slash government spending by £47 billion by clamping down on welfare, reducing the size of the civil service by a quarter and cutting billions from foreign aid.

According to Mrs Badenoch, at least half the money saved will be used to reduce the deficit, with the rest spent on cutting tax or boosting the economy.

Pledging a new ‘golden economic rule’, she will say: ‘Every pound we save will be put to work. At least half will go towards cutting the deficit. Because living within our means is our first priority.

‘With the rest, we are going to get our economy growing again. And bring down the taxes stifling our economy.’

The Conservatives have set out plans this week to scrap business rates for 250,000 pubs and high street shops at a cost of £4billion. 

A further £2.8 billion has been allocated to fund a new ‘first job bonus’ which would offer young people entering the workplace up to £5,000 towards their first home. 

But, even with £24billion used to cut the UK’s deficit, this would still leave up to £16billion available for potential further tax cuts.

 The Tory leader will also pledge to curb funding for ‘low quality’ degree courses and use the proceeds to double the number of apprenticeships.

Mrs Badenoch will warn that too many courses are drawing students into a ‘debt trap’ in which they will never earn enough to pay back their tuition fees.

She will cite analysis suggesting that almost a third of graduates now see ‘no economic return’ on their years of study, adding: ‘Every year thousands of young people go off to university, but leave with crippling loans and no real prospects.

‘We will shut down these rip-off courses and use the money to double the apprenticeship budget. Giving thousands more young people the chance of a proper start in life.’

Tories believe that Nigel Farage’s efforts to move into Labour territory have opened ground for them

Mrs Badenoch with her husband Hamish on the way to deliver her big speech  

Tory sources highlighted figures showing that many graduates in areas like the performing arts, media studies earn below the national average wage.

Under Tory plans, funding for courses whose graduates go on to earn low wages would be capped. The savings would be used to increase the number of apprenticeship places on offer.

Student number caps were fully lifted in England in 2015, leading to a record number of students being accepted onto university courses that year.

By reintroducing and gradually lowering the caps, the Conservatives hope to limit loan repayment losses through a reduction in the number of people going to university.

The party said the policy would see 100,000 fewer people per year going to university by the end of the next parliament, saving £3 billion – enough to fund a doubling of the apprenticeship budget.