27 May 2025, 16:15 | Updated: 27 May 2025, 16:50
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Reform UK’s proposals to save £225 billion by scrapping net zero projects has been labelled as “fantasy economics” by critics.
Nigel Farage announced his five-year tax and spend plans as he looked to capitalise on the party’s surging popularity in the polls.
As part of a series of pledges to woo voters in the Labour heartlands, the Reform leader also suggested axing the two-child benefit limit and restoring the winter fuel allowance for all pensioners.
Mr Farage also stated his party wanted to dramatically increase the threshold for paying the basic rate of income tax from £12,570 to £20,000 and tabled a possible transferable marriage tax allowance.
But questions have been asked as to how these new measures would be paid for.
Mr Farage said: “If we win the next election, we will scrap net zero, something that is costing the Exchequer an extraordinary £40 billion plus every year.”
Asked to explain the costings of these “big savings”, Reform MP Sarah Pochin said:”We have calculated that if we scrap these net zero white elephants projects, that the Conservatives were just as committed to as this Labour government, that over five years we can save £225 billion.”
The Runcorn and Helsby MP, who won her seat at the recent by-election, also claimed savings could be made by axing “crazy, woke” diversity, equality and inclusion schemes.
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The £225 billion savings figure from axing net zero projects was based on a report by the Institute for Government, Reform sources say.
But the majority of this green investment was due to come from the private sector and not from public funds, the IfG warned.
Read more: Farage to pledge to scrap two child benefit cap as he looks to ‘outflank’ Labour on ‘working people’
Jill Rutter, senior fellow at the IfG, told The Standard: “Cancelling private investment does not save the Government money.”
Reform also failed to take into account that the IfG analysis also highlighted the tens of billions of pounds in savings the UK would make from going green.
Furthermore, a leading economist also suggested the party’s income tax plan could cost between £50 billion to £80 billion.
Stuart Adam, a senior economist at the Institute for Fiscal Studies, said it would be “very difficult” to find savings to fund it without cutting public services.
Shadow Chancellor Mel Stride added: “What you’re seeing is Nigel Farage trying to be all things to all people, with lots of announcements and no thinking behind how he’s going to pay for any of these things.
“It is all fantasy economics, and it’s really dangerous for our economy.”
