Labour leader Keir Starmer has criticized Reform UK leader Nigel Farage’s economic proposals, warning that they could destabilize the UK’s financial markets and lead to a crisis reminiscent of former Prime Minister Liz Truss’s 2022 minibudget. Starmer described Farage’s plans as “fantasy economics,” highlighting concerns over their feasibility and potential impact on the economy.
Reform UK’s economic agenda includes significant tax cuts, such as raising the personal income tax threshold to £20,000 and the 40% rate threshold to £70,000, which could cost between £60 billion and £80 billion annually without clear offsetting measures. The party also proposes accepting Bitcoin donations and making regulatory changes to encourage cryptocurrency adoption. Critics argue that these proposals lack credibility and could undermine fiscal stability.
Starmer’s comments reflect growing concerns among economists and financial experts about the potential risks of Reform UK’s economic policies. While Farage insists that the proposals are evolving and points to potential savings from eliminating net-zero targets and cutting overseas aid, experts question the deliverability of such savings. The debate over these economic plans is expected to intensify as the next general election approaches.
