{
  "id": 15714832,
  "title": "Badenoch urges Healey to avoid ‘fictional cuts’",
  "url": "https://urgent.news/2026/10/20/badenoch-urges-healey-to-avoid-fictional-cuts",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-20T07:00:31.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/badenoch-urges-healey-to-avoid-fictional-cuts/"
  },
  "original_language": "en",
  "account": "Tory leader Kemi Badenoch has called on Chancellor John Healey to concentrate on cutting spending urgently and to refrain from making \"fictional cuts\" at the end of parliament. In a speech in London, Badenoch will argue that Labour's deficit reduction plans are based on \"huge cuts to the public sector in the final year of the spending period\" that may never materialize, as an election could occur first. Spending growth in real terms is projected to slow at the end of the forecast period following a faster increase in the early years of the Labour government. Economists have warned that plans to ease spending rely on \"ambitious\" assumptions. Badenoch is expected to caution that \"fictional cuts are not going to cut it\" and point to analysis from the Institute for Fiscal Studies, which suggests higher inflation could erode the value of spending and create a £35bn budget gap. This speech comes at a crucial time for the opposition leader, as Labour has gained more trust among voters on economic issues according to a recent survey. Badenoch will contend that Healey, who will present his first Budget on October 28, risks causing more harm than any of Rachel Reeves' previous budgets through a \"nothing to see here\" fiscal approach. The Tory leader will highlight that the UK is paying nearly two per cent more on borrowing costs compared to Germany, with debt interest payments expected to reach about £110bn this year and exceed £130bn by 2030. Badenoch will warn that a reduction in interest rates would eliminate concerns about defense spending and be \"unfair\" to future generations who would be left with debts that the current administration might have avoided.",
  "summary": "Tory leader Kemi Badenoch has urged Chancellor John Healey to focus on urgently cutting spending and avoid making “fictional cuts” at the end of parliament. In a speech in London on Tuesday, Badenoch will warn that Labour’s deficit reduction plans rely on “huge cuts to the public sector in the final year of the spending [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}