Reform UK leader Nigel Farage is set to confront Chancellor Rachel Reeves with a bold proposal to avoid increasing taxes in the upcoming Budget. He will demand she imposes major spending cuts, prioritising British citizens over foreign nationals.
In a speech in London on Tuesday, Mr Farage will outline five key measures he claims would save the Treasury £25 billion in the current financial year alone. This sum, he argues, would more than cover the estimated £20 billion black hole in the public finances.
Five Pillars of Farage's Cost-Cutting Plan
The cornerstone of the Reform UK proposal is a drastic reduction in the overseas aid budget. Mr Farage will urge the Labour government to cap spending at just £1 billion a year, a move he says could save up to £10 billion. The party contends that the UK 'simply cannot afford' the current allocated level of £13.7 billion for 2025-26, which includes over £2 billion for asylum accommodation, while its own citizens face hardship.
Next, the plan targets the NHS Immigration Health Surcharge. Reform proposes more than doubling the annual fee for foreign students and workers from £1,035 to £2,718, arguing this better reflects the actual cost of healthcare. This change, alongside applying the charge for the first time to those seeking Indefinite Leave to Remain, is projected to raise an extra £5 billion this year. Foreign health and care workers would remain exempt.
A third measure focuses on crime and justice, proposing to deport the 10,000 Foreign National Offenders currently in UK prisons. Reform estimates this would save the taxpayer £580 million.
Shifting the Burden from British Taxpayers
The fourth measure involves a significant overhaul of the benefits system for migrants. Mr Farage will call for an end to Universal Credit payments for foreign nationals, including the millions of EU citizens granted Settled Status since Brexit. He suggests giving three months' notice, during which negotiations with Brussels could be opened. The party claims this could save a further £6 billion.
Finally, the plan looks to reform disability benefits. Reform proposes saving £3.5 billion by stopping people with anxiety disorders from claiming Personal Independence Payments (PIP). Instead, the party suggests most of the almost half a million claimants should be placed on a 'Fast Track to Work' scheme.
A Labour party spokesman dismissed the proposals, stating: 'Reform can put forward as many back of a fag packet policies as they like - they don't have a plan to deliver for the British people.' The spokesman also criticised Mr Farage for his past support of Liz Truss's mini-Budget.
