Farage to give up Reform’s manifesto pledge for £90bn in tax cuts
“Cut taxes for working people”, Reform UK declared, after the party promised £90 billion in tax cuts ahead of last year’s general election, in which it won 14 per cent of the vote and five seats in Parliament.
Party’s “Contract with You” featured The 26-page manifesto has the word “tax” in 58 places, saying it would increase the income tax personal allowance to £20,000, while increasing the threshold for paying the higher rate to £70,000.
The party has also pledged to abolish inheritance tax on estates worth under £2 million.
But party bosses appear to be rethinking earlier plans after the Institute for Fiscal Studies (IFS) questioned the realism of the tax plans and opinion polls now show a lack of confidence from voters about fiscal responsibility.
Leader Nigel Farage will appear determined to go a step further by saying he would break the 2024 policy by cutting £90bn after deputy leader Richard Tice told the BBC in September that the manifesto was “not suitable” for the next election.
Accordingly TimesIn his first major speech on the economy next month, Mr Farage will say the party will not cut taxes before making cuts to spending and public services and imposing a ban on borrowing to fund government spending.
Party sources told the newspaper the new policies would focus on cuts to fuel duty, income, corporate and inheritance taxes.
“We will present a rigorous, fully-costed manifesto at the next election,” Mr Farage said. Times.
“Reform will never borrow to spend, as Labor and the Conservative Party have long done; instead we will ensure that savings are made before implementing tax cuts. I will have more to say about all this in the coming weeks.”
He said the policy of increasing the tax-free personal allowance to £20,000, estimated to cost between £50bn and £80bn, was now “a target we should be aiming for”.
Mr Farage was speaking as he visited Wales to support Reform candidates Llyr Powell in the Caerphilly by-election. The contest, held as a result of the sudden death of Labor MP Heifin David in August, provides an opportunity for Reform to launch its campaign ahead of the country’s Senedd elections next year.
It is also a chance for the party to respond to criticism faced during the Labor and Conservative party conferences, where Conservative Party shadow chancellor Mel Stride said Reform had promised tens of billions of pounds of unfunded commitments in its manifesto.
Mr. Stride told delegates: “Rest assured that when the sparkle, the sparkle, the buzz of the sequined dress, the spinning plates, the fireworks are gone, you will be left empty.”
Accordingly TimesSome opinion polls show the Conservatives leading the Reform when voters are asked which party they trust most on the economy.
The reform hinted in its 2024 manifesto that tax cuts would be partly financed by a “cut on waste”. [government] spending” would save £50 billion a year, while a 50 per cent cut in foreign aid would save a further £6 billion.
In its assessment of the plans, the IFS said: “While the reform manifesto gives a clear sense of priorities, a government may only implement parts of this package or need to find other ways to help pay for it, meaning unspecified losers.”
But reportedly TimesThe reform will now seek to bolster its economic credibility with plans to cut spending with a ban on welfare payments to most immigrants and deeper cuts to the public sector and public services than initially proposed.
The party also aims to stimulate growth and reduce energy costs through a program of investment in partially nationalized nuclear power plants.
Mr Farage told Times: “The 2024 document proposed cuts to public service spending, but we will increase these cuts. We will cut overall spending, implement an industrial policy and lead a cultural change in attitudes to work and success.”
Although a shadow chancellor has not yet been named by the party, he added: “We will launch a new campaign between now and the budget – an economic campaign… it will be very effective.”
