‘Nigel Farage has finally admitted what everyone already knew: Reform’s economic plans are built on sand.’
Reform is set to ditch the massive tax cuts it included in its 2024 general election manifesto.
Nigel Farage’s party pledged to abolish inheritance tax for all estates under £2 million, reduce corporation tax to 15%, increase the income tax personal allowance to £20,000 and the higher rate threshold to £70,000.
These tax changes, aside from increasing the income tax personal allowance to £20,000, are skewed towards benefitting the rich.
At the time, the Institute for Fiscal Studies warned that the proposals, which would cost £90 billion per year and spending increases of £50 billion a year, “do not add up”.
The party claimed they would pay for the tax cuts through £150 billion per year of reductions in other spending, on public services, debt interest and working-age benefits.
In May, the party unveiled further uncosted pledges, including restoring winter fuel payments for all pensioners and scrapping the two-child benefit cap, and reaffirmed its pledge to make earnings up to £20,000 tax-free.
Reform claimed it would fund these pledges by scrapping net zero, which it says would save £225 billion over five years.
Now, Farage will reportedly use a speech next month to stress that Reform will make savings before implementing any tax cuts.
Furthermore, on Times Radio today, deputy leader of Reform Richard Tice distanced the party from its manifesto, stating: “A manifesto is based on a point in time.”
He claimed: “The principles behind it [the manifesto] are absolutely rock solid. We said we’ve got to make very significant savings in order to fund a different way to run the economy.”
Tice then tried to blame Labour for the country’s economic outlook. He said: “Because of the mismanagement by this Labour government, the numbers have got far worse. And we will be focusing relentlessly, as I’ve been saying, on the savings.”
Tice added that raising the income tax personal allowance to £20,000 is now just an “aspiration”. He also appeared to backtrack on Reform’s plan to cut fuel duty by 20p per litre, saying: “All the other details go because we’re in a different time.”
In response to the plans, a Labour Party spokesperson said: “Nigel Farage has finally admitted what everyone already knew: Reform’s economic plans are built on sand.
“Farage continues to flirt with Liz Truss’s economy-crashing unfunded pledges – which would leave family finances at risk. Working people simply cannot trust Reform. They offer anger but no answers. Only this Labour government is focussed on renewing Britain, so that we can grow the economy and put money back in people’s pockets.”
Olivia Barber is a reporter at Left Foot Forward
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