What would UK economic policy look like under Nigel Farage’s Reform? | Reform UK

1. Tax cuts – or lack thereof yet

In the run-up to local elections in May, Reform was promising to raise the threshold for people to start paying income tax from £12,570 to £20,000; This resulted in thousands of people losing tax and costing the exchequer more than £40 billion a year.

Amid growing scrutiny over how or whether it could be paid for, Farage backed down. Asked after the speech whether the policy still applied, he said he would “want” the £20,000 threshold but that it was a final request.

He said it was impossible to know what state the economy would be in by the next election, meaning most firm promises on fiscal promises would have to wait for now. There was one exception; Farage said he would roll back Labor’s changes to inheritance tax on farms.

2. Two-child benefit limit, salaries and pensions

At a press conference last week, Reform said it could save £9bn a year by tightening eligibility for personal independence payments, or Pip. Asked about another policy on benefits – the party’s pledge to remove the two-child limit on payments for some benefits such as universal credit – Farage said it could only be for UK citizens where both parents work, which significantly limits his generosity.

As part of his general reluctance to announce specific policies, Farage has refused to commit to the so-called triple lock to guarantee significant annual increases in pensions; but he was willing to say that the minimum wage was probably “too high for young workers.”

3. Rich people and entrepreneurs

While polls regularly show the cost of living is one of the top priorities for voters, Farage has paid little attention to the issue beyond touching on fuel bills and the alleged impact of immigration.

However, there was a lot of talk about the alleged exodus of rich people and young entrepreneurs due to a punitive tax regime, and this narrative was not supported by much evidence. Such types, which Farage called a different economic “species” to ordinary mortals, should be valued at all costs, he said.

4. Pension

While public sector workers are not always Reform’s primary target group for support, they need to cast the net wide if they want to win the election. So the party’s hints that defined pensions for public sector workers are likely to be scrapped may not be so well received, even if it’s a conversation most parties would make in private (like the triple lock).

When asked about this, Farage was a bit coy, saying only that the party was committed to reducing the fees councils pay to manage pension schemes; The party’s vice chairman, Richard Tice, had previously mentioned this.

5. Energy and net zero

Continuing the theme of “pro-Reform policies that don’t necessarily poll very well with voters more widely”, Farage used a long part of his speech to condemn what he called the “mad” push for net zero and promised to instead prioritize new drilling for fossil fuels in the North Sea.

While the idea of ​​lower energy costs as promised by Farage is popular, there is very limited evidence that new drilling in the North Sea could achieve this. Despite all this, some right-wing newspapers and commentators talk as if the government’s net zero targets are hated, while polls generally show the opposite.

6. Diversity and inclusion

On the economy, as on other policies, Farage is careful to keep some distance from Donald Trump, who is a distinctly niche proposition for UK voters generally. But in one area he fully agrees with the UK president’s diversity policies.

A fair chunk of Farage’s speech was a harsh criticism of what he called over-regulation of the UK economy, including a swipe at what he called the “single booming sector” of HR and compliance.