Nigel Farage's Reform UK has been accused of peddling 'fantasy economics' after claiming it could save £225 billion over five years by scrapping net zero projects. The party unveiled a series of spending pledges, including axing the two-child benefit limit, restoring winter fuel payments for all pensioners, and raising the income tax threshold to £20,000.
Reform UK leader Nigel Farage said scrapping net zero would save the Exchequer over £40 billion annually. New MP Sarah Pochin cited a report by the Institute for Government (IfG) as the basis for the £225 billion figure, but the IfG stressed that most green investment comes from the private sector, not public funds. Senior fellow Jill Rutter noted: 'Cancelling private investment does not save the Government money.'
Economists questioned the feasibility of the plans. Stuart Adam of the Institute for Fiscal Studies estimated the income tax changes alone could cost £50–80 billion, making it 'very difficult' to fund without cutting public services. Shadow Chancellor Mel Stride called it 'fantasy economics' and 'dangerous for our economy.'
Liberal Democrat leader Sir Ed Davey likened the proposals to 'Trussonomics on steroids,' referencing Liz Truss's 2022 mini-budget that sparked market turmoil. Labour chair Ellie Reeves echoed this, saying Farage's promises mirrored those that 'crashed the economy' under Truss.
Reform UK has surged in polls, overtaking the Conservatives in some surveys, as Farage positions his party as the true opposition to Labour. In a speech, he attacked Prime Minister Sir Keir Starmer over EU deals and the Chagos Islands handover, accusing him of 'betrayal.'
