Farage economy speech has revealed a shift in Reform UK’s economic plans. The party leader confirmed he will no longer pursue substantial tax cuts immediately.
Speaking in the City of London, Nigel Farage said the country’s debt levels make large reductions impossible right now. However, he stressed smaller reforms remain possible.
“We want to cut taxes, of course, but substantial reductions are not feasible given the state of our finances,” Farage explained. Meanwhile, he pledged raising income tax thresholds to £20,000.
Farage also vowed to eliminate inheritance tax on family farms and small businesses. Additionally, he highlighted the importance of incentives alongside stricter welfare rules. “We need a carrot and stick approach,” he added.
The Reform leader confirmed his party only supports removing the two-child benefit cap for working British couples. Furthermore, Farage argued high childcare costs discourage work and larger families.
He rejected the idea of heavily taxing the wealthy. “I want as many high-earning people as possible living here, paying tax legally. Otherwise, others pay more,” Farage said.
Farage criticised IR35 rules, which he claimed burden small businesses. He added, “These regulations stifle innovation and push some older workers into early retirement.”
He also warned that Chancellor Rachel Reeves may face market pressures, which could force an austerity Budget in the next years. Moreover, he emphasised debt reduction is crucial to avoid economic collapse.
Farage promoted cryptocurrency adoption, arguing Britain is falling behind global markets. He criticised regulators for turning their backs on digital assets and stablecoins. Meanwhile, he attacked Britain’s rapid deindustrialisation, citing losses in chemicals, steel, and heavy engineering.
He promised a Reform government would revive the North Sea and support nuclear energy. Additionally, he pledged to scrap net zero subsidies to lower energy costs.
Labour responded, accusing Farage of planning damaging austerity and slashing public services. They claimed his proposals risk jobs, schools, and pensions.
Shadow Chancellor Mel Stride said Farage’s policies remain incoherent. “The only welfare reforms he named are watered-down versions of Conservative plans,” Stride said. Therefore, Reform’s economic policy is in chaos and lacks a clear plan.
Farage economy speech demonstrates the party’s attempt to balance ambition with fiscal caution. Yet, analysts and political opponents remain sceptical about implementation.
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