Reform UK has urged Chancellor John Healey to cut £40 billion in “wasteful spending” so households can benefit from “£1,300 in tax relief”. The call comes as Robert Jenrick, Nigel Farage’s pick to serve as Chancellor in a Reform Government, sets out his plans for the Treasury.
Jenrick's proposed cuts
Mr Jenrick plans to cut £20 billion from the welfare budget, £8 billion from net zero subsidies, £6 billion from foreign aid, £2 billion from quangos and the civil service, and £3 billion from “student loans to dead-end degrees and foreigners”. He also plans to raise £1 billion from the immigration health surcharge.
He is calling on the Chancellor to use £18 billion of savings to hike the tax-free personal allowance to £15,000, arguing this would “leave the average household £1,000 better off”.
Reform's message
Mr Jenrick said: “We can’t go on like this. Britain is broke. We need emergency spending cuts so we can give families and businesses tax relief.”
He criticised the Chancellor, saying: “Benefits Burnham has chosen to kick all the tough decisions down the road. He can’t seem to find a single piece of wasteful spending to cut. Frankly, it’s a cowardly abdication of his duty to safeguard the country’s finances.”
In contrast, he said: “Reform won’t flinch from taking the decisions needed to put us on a better footing. We will confront out-of-control spending straight away – slashing the ballooning benefits bill, cutting foreign aid and ending net zero subsidies – so we can give households £1,300 in tax relief.”
Additional plans
As well as taking £250 off people’s energy bills and scrapping the fuel duty hike, Mr Jenrick wants to use savings to invest in defence and “restore fiscal headroom”.
On Monday, Mr Farage and Mr Jenrick plan to set out Reform UK’s “economic rescue plan”. While the Chancellor will present the Budget “red book”, Reform will produce a “teal paper”.
