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The Tories will not win back trust of the British people by simply “pointing out how terrible Labour are”, Kemi Badenoch will say.

Speaking at the launch of her Conservative leadership campaign on Monday, the former Business Secretary will attack the new government as failing to offer “something better”.

But despite reeling off a list of criticisms, including “trying to pull the wool over the eyes of the British public about the state of the UK finances”, she will go on to say that this won’t help her party win the next election.

“If the Conservatives want to become worthy of the British people’s trust again, we can’t just sit around pointing out how terrible Labour are… fun as it is,” Ms Badenoch will say.

“We can’t just keep having the same policy arguments from the last parliament. We lost. We are not in power.

“Labour will fail; and when that time comes, and the British people are looking for change, we have to be that change.

“We have to focus on renewal. The renewal of our party, our politics, and our thinking.”

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The Tories suffered their worst ever general election defeat in July, ushering a Labour government into power for the first time in 14 years.

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Labour sweep into power

Conservatives are split about what direction the party should go in, with some calling for a return to the centre ground and others favouring a shift to the right to combat the threat of Reform UK.

Ms Badenoch, seen as favourite on the right, is up against five others in the race to replace Rishi Sunak: Robert Jenrick, James Cleverly, Dame Priti Patel, Tom Tughendhat and Mel Stride.

Mr Cleverly will also give a speech on Monday, when parliament returns from the summer recess, in which he will say his party must “think and act like Conservatives again” and argue for a smaller state.

James Cleverly
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James Cleverly

He will say the Tories “must get our act together” to present solutions to “an unstable world, global migration and a crisis of confidence in capitalism”.

“That means being honest and realistic about the role of the state. About what it should and can do, and what it should not and cannot. The state should focus on doing fewer things very well, not everything badly,” he will add.

“We accept that the state has a primary duty to protect its people and its borders. But Conservatives must be honest about the trade-offs in doing these things properly.”

Read more:
Tugendhat: ‘Fight illegal migration like we did slavery – with the navy
Jenrick would be ‘pleased’ to have Johnson in his shadow cabinet

Mr Cleverly will also argue for a “family-first society” rather than looking to the state as the first port of call when a problem arises.

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The candidates are seeking support from fellow MPs ahead of the first round of voting on Wednesday, after which the field of contestants will be reduced to four.

The build-up to the ballot has already seen major speeches by Mr Tugendhat, Ms Patel and Mr Jenrick in recent days.

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A husting will be held during the party conference at the end of the month, when MPs will vote again to narrow the field to two candidates.

The party’s wider membership will then vote with the winner announced on 2 November.

Watch Sky News’ The Politics Hub this evening at 7pm.

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NY Supreme Court allows Greenidge to keep mining, but challenges remain

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NY Supreme Court allows Greenidge to keep mining, but challenges remain

The state Department of Environmental Conservation botched the permitting process, but it still gets a do-over.

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UK economy grows by 0.1% between July and September – slower than expected

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UK economy grows by 0.1% between July and September - slower than expected

The UK economy grew by 0.1% between July and September, according to the Office for National Statistics (ONS).

However, despite the small positive GDP growth recorded in the third quarter, the economy shrank by 0.1% in September, dragging down overall growth for the three month period.

The growth was also slower than what had been expected by experts and a drop from the 0.5% growth between April and June, the ONS said.

Economists polled by Reuters and the Bank of England had forecast an expansion of 0.2%, slowing from the rapid growth seen over the first half of 2024 when the economy was rebounding from last year’s shallow recession.

And the metric that Labour has said it is most focused on – the GDP per capita, or the economic output divided by the number of people in the country – also fell by 0.1%.

Chancellor of the Exchequer Rachel Reeves. Pic: Reuters
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Pic: Reuters

Reacting to the figures, Chancellor of the Exchequer Rachel Reeves said: “Am I satisfied with the numbers published today? Of course not. I want growth to be stronger, to come sooner, and also to be felt by families right across the country.”

“It’s why in my Mansion House speech last night, I announced some of the biggest reforms of our pension system in a generation to unlock long term patient capital, up to £80bn to help invest in small businesses and scale up businesses and in the infrastructure needs,” Ms Reeves later told Sky News in an interview.

“We’re four months into this government. There’s a lot more to do to turn around the growth performance of the last decade or so.”

New economy data tests chancellor’s growth plan

The sluggish services sector – which makes up the bulk of the British economy – was a particular drag on growth over the past three months. It expanded by 0.1%, cancelling out the 0.8% growth in the construction sector.

The UK’s GDP for the most recent quarter is lower than the 0.7% growth in the US and 0.4% in the Eurozone.

The figures have pushed the UK towards the bottom of the G7 growth table for the third quarter of the year.

It was expected to meet the same 0.2% growth figures reported in Germany and Japan – but fell below that after a slow September.

Read more from Sky News:
Chancellor vows to rip up financial red tape
Massive winter fuel payment ‘cut’ no one ever talks about

The pound remained stable following the news, hovering around $1.267. The FTSE 100, meanwhile, opened the day down by 0.4%.

The Bank of England last week predicted that Ms Reeves’s first budget as chancellor will increase inflation by up to half a percentage point over the next two years, contributing to a slower decline in interest rates than previously thought.

Announcing a widely anticipated 0.25 percentage point cut in the base rate to 4.75%, the Bank’s Monetary Policy Committee (MPC) forecast that inflation will return “sustainably” to its target of 2% in the first half of 2027, a year later than at its last meeting.

The Bank’s quarterly report found Ms Reeves’s £70bn package of tax and borrowing measures will place upward pressure on prices, as well as delivering a three-quarter point increase to GDP next year.

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US gov’t job could allow Elon Musk to defer capital gains tax

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US gov’t job could allow Elon Musk to defer capital gains tax

The ‘DOGE’ department proposed by Elon Musk could allow the Tesla CEO to divest many of his assets and defer paying taxes.

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