Nigel Farage, leader of Reform UK, has significantly scaled back the party's ambitious tax-cut plans, stating that substantial cuts could not be implemented immediately due to the dire state of public finances. Previously, Reform UK had pledged tax cuts worth $90 billion annually, a plan economists had criticized as unrealistic. Farage explained this shift reflects a "mature" approach and a focus on convincing markets the party can fix the British economy ft.com, reuters.com.
Robert Jenrick, Reform UK's Treasury spokesman, outlined the party's economic strategy in a City of London pitch, emphasizing a commitment to fiscal discipline and a reform-oriented approach to institutions. He stated Reform UK would not abolish the Office for Budget Responsibility (OBR) but would reform it, asserting the OBR has overestimated the benefits of low-skilled migration. Jenrick also pledged the Bank of England would remain independent but would be stripped of "distractions" like the requirement to assist with net-zero transition, focusing instead on keeping inflation low standard.co.uk, independent.co.uk.
Jenrick detailed several cost-saving measures, including reinstating the two-child benefit cap and aiming for $25 billion in annual savings through steps such as ending Universal Credit for foreign nationals, increasing the Immigration Health Surcharge, and capping foreign aid at $1 billion. He also proposed cutting the civil service to generate an initial $4 billion in savings and a further $1 billion in averted pension liabilities, despite potential significant redundancy costs independent.co.uk.
Other proposals from Reform UK include a "Foreign Investor Gold Card" scheme, allowing wealthy foreign nationals a residence permit for a one-time fee of $250,000, with no taxes on foreign-earned wealth, income, or capital gains. The party estimates this could generate around $2.5 billion annually, which would then be distributed as a $1,000 dividend to the lowest-income individuals. However, critics like Dan Neidle of Tax Policy Associates have argued this policy could cost the economy $34 billion over five years in lost government revenue independent.co.uk.
