Reform UK plans to implement substantial cuts to public spending, amounting to approximately £80 billion, according to statements made by the party's economy spokesman, Robert Jenrick. Speaking at the party's conference, Jenrick positioned Reform as the "party of fiscal responsibility," aiming to draw a contrast with previous administrations and reassure financial markets.
Jenrick emphasized the need to learn from the market's negative reaction to former Prime Minister Liz Truss's 2022 economic policies, which included large energy subsidies and unfunded tax cuts. He suggested that while Reform has considered proposals like cutting inheritance tax, such measures would not be a priority, arguing that focusing on reducing income tax for millions of taxpayers is more impactful than privileging a smaller group.
The party intends to maintain the state pension triple lock, a commitment estimated to cost £15.5 billion annually by 2030. Jenrick stated that cutting pensions would be unfair while significant waste persists in the public sector. He plans to engage with investors holding government debt to discuss fiscal rules aimed at lowering borrowing costs, which have recently risen to a 28-year high for the UK.
Housing and Business Proposals
Reform UK's business spokesman, Richard Tice, also presented policy ideas focused on increasing housing supply and supporting high street businesses. Tice proposed measures to boost house building on brownfield sites, including potential waivers on stamp duty, capital gains tax, and rental income tax for a decade for such developments. Requirements for affordable housing on brownfield sites outside major cities could also be removed under these plans.
While these housing proposals are expected to reduce tax receipts, the party argues that the resulting increase in housing stock would stimulate the economy. Tice also suggested reducing business rates for high street shops, with the cost offset by increasing taxes on online retailers.
The Reform UK conference follows a period of turbulence for the party, including leader Nigel Farage's temporary resignation and subsequent re-election campaign. The party is also reportedly subject to a police investigation into its donations.