Nigel Farage's Reform UK party is facing serious questions over its economic credibility after a leading think tank revealed their tax and spending plans would create a staggering £40 billion black hole in Britain's public finances.
Fiscal Timebomb Exposed
The Institute for Fiscal Studies delivered a devastating assessment of Reform's manifesto, warning that their proposed tax cuts would leave a massive funding gap equivalent to the entire schools budget for England. The analysis suggests the shortfall would necessitate either severe spending reductions or substantial tax increases elsewhere.
Paul Johnson, director of the IFS, stated: "The sums simply don't add up. While Reform proposes some significant tax reductions, they haven't identified anything like sufficient spending cuts to pay for them."
Key Reforms Under Scrutiny
The controversial proposals include:
- Raising the income tax threshold to £20,000
- Scrapping inheritance tax entirely
- Eliminating the main rate of corporation tax for small businesses
- Removing VAT from energy bills and private medical services
Work and Pensions Secretary Mel Stride amplified the criticism, telling Sky News that Reform's plans were "completely un-costed" and would inevitably lead to higher borrowing or devastating cuts to essential public services.
Political Fallout Intensifies
The timing of this fiscal revelation couldn't be worse for Farage, coming just days before voters head to the polls. The IFS assessment provides ammunition for both Conservative and Labour critics who have questioned the economic viability of Reform's platform.
Johnson emphasised the broader context: "This isn't just about Reform. All parties have been disappointingly vague about how they'll manage the considerable fiscal challenges facing the next government."
The think tank's intervention highlights the growing concern among economists about the lack of detailed fiscal planning across the political spectrum, raising questions about how the next government will navigate Britain's precarious financial position.
