Reform UK leader Nigel Farage is facing accusations from the Labour Party of risking a damaging trade war with the European Union through his proposal to strip EU citizens of Universal Credit benefits.
The Controversial Proposal
During a press conference in London on Tuesday, Mr Farage outlined plans that would end Universal Credit payments for citizens from the EU, a move he claims would save the UK Treasury approximately £6 billion. This proposal directly challenges the Brexit deal negotiated by the Conservative government, which guarantees citizens with settled status the right to claim certain benefits.
Reform UK stated that EU citizens currently claiming Universal Credit would be given a three-month notice period as part of a transitional arrangement before their payments are terminated. The party insists that Mr Farage would seek to renegotiate the benefits section of the Brexit agreement, although such a move is expected to be firmly rejected in European capitals.
Labour's Stern Warning and Economic Fallout
Labour was quick to condemn the proposal, warning that it could provoke a severe trade conflict between the UK and Brussels. A Labour spokesman argued that such a conflict would inevitably result in higher prices on shelves for British shoppers, hitting household budgets at a time of economic pressure.
The spokesman further criticised Mr Farage's financial calculations, stating, "Nigel Farage's fantasy numbers don't add up, and he'd leave British taxpayers footing a hefty bill. Farage is happy to slap British shoppers with higher prices at the checkouts by risking a trade war with Europe." The party emphasised that its own upcoming Budget, to be unveiled by Chancellor Rachel Reeves on November 26, would focus on fair choices and strong economic foundations without a return to austerity.
The Wider Budget Context
This political clash occurs as the Chancellor prepares her Budget, aiming to address a financial shortfall now estimated by the Office for Budget Responsibility (OBR) to be around £20 billion. While still a significant challenge, this figure is more favourable than the £30 billion-£40 billion experts had initially feared.
Reform UK has positioned its own set of proposals, totalling £25 billion in savings, as an alternative to tax hikes. These include a plan to raise the immigration health surcharge from £1,035 to £2,718 per year, which the party claims would raise an additional £5 billion.
Despite these claims, the central political battle remains focused on the potential consequences of altering the post-Brexit relationship with the EU, with Labour asserting that Farage's policy would betray British working people and businesses that rely on trade with Europe.
