Nigel Farage has announced a major policy to increase the VAT threshold for small businesses, leveraging Brexit freedoms, while cautioning voters against supporting Andy Burnham's plans to rejoin the European Union. The Reform UK leader made the pledge during a press conference ahead of the Makerfield by-election.
VAT Threshold Increase Details
Under the proposed change, small businesses would only start paying VAT once their earnings reach £150,000, up from the current threshold of £90,000. Farage stated that this move would directly impact approximately a third of a million businesses from day one, with potential for many more to benefit.
He argued that the policy would boost productivity, as many companies currently keep their income just below the VAT threshold to avoid the tax, discouraging them from taking on additional work. The change is only possible because the UK left the EU, Farage emphasized.
Political Context and Criticism
Farage's announcement comes amid the Makerfield by-election campaign, where Reform UK candidate Rob Kenyon, a local plumber, is facing Labour's Andy Burnham. The Manchester Mayor has expressed a desire for the UK to rejoin the EU within his lifetime, a stance Farage criticized as disregarding the democratic Brexit vote.
During a hustings hosted by the Manchester Evening News, Burnham attacked Reform's immigration record, noting that two prominent Reform members, Robert Jenrick and Suella Braverman, were in charge of immigration when net migration peaked. Both defected from the Conservatives to Reform UK and have been vocal critics of previous immigration policies.
Farage also faces pressure from the right-wing splinter party Restore Britain, led by Rupert Lowe, which advocates for mass deportations. A spokesman for Burnham accused Farage of avoiding questions about donations and sexist comments made by his candidate.
